Alfa, S.A.B. de C.V. Achieves Milestone in Consent Solicitation
Alfa, S.A.B. de C.V. Achieves Consent for Senior Notes
Alfa, S.A.B. de C.V. (the "Company") has recently hit a significant milestone by successfully obtaining the necessary consents from its senior noteholders regarding its ongoing consent solicitation and CUSIP exchange offer related to its 6.875% Senior Notes due 2044. This achievement showcases the strong support from noteholders, which enables the Company to proceed with critical amendments that align with its long-term strategic objectives.
Overview of the Consent Solicitation
The Company announced that it has secured the requisite consents from holders of approximately US$449 million in principal amount of the 6.875% Senior Notes, representing around 89.85% of the outstanding notes. This strong approval allows Alfa to enhance its financial structure and further develop its upcoming plans.
Details of the Solicitation Process
As part of the consent solicitation process, the Company sought approval for proposed amendments to the indenture governing the notes. Following the receipt of the necessary consents, Alfa executed a supplemental indenture, referred to as the "First Supplemental Indenture," which supports the agreed amendments. The Company has also indicated that additional conditions must be met for these amendments to take full effect.
Benefits of the Note Guarantees
A notable aspect of this development is the issuance of Note Guarantees that will benefit all noteholders. With the strong backing from the holders who delivered valid consents, the Company aims to provide liquidity and enhance the overall attractiveness of the notes in the market.
Compensation for Eligible Holders
Eligible Holders who submitted their consents before the established consent deadline are set to receive an Early Consent Fee of US$10.00 for each US$1,000 of notes. This incentive not only rewards active participation but also reflects the Company’s commitment to its stakeholders.
Future Steps and Conditions
The proposed amendments and additional conditions linked to the solicitation process are crucial for ensuring that all holders of the notes are bound by the new terms once they become operative. One of the key conditions is obtaining shareholder approval concerning the spin-off of the Company's interest in its subsidiary, Alpek, S.A.B. de C.V.
Solicitation Timeline
The Company has set an expiration date for the current solicitation process, which may be subject to extension or earlier termination depending on various factors. Stakeholders are being urged to act promptly to ensure their participation in this important initiative.
Company's Communication Channels
For any questions or information related to this consent solicitation, J.P. Morgan Securities LLC, along with other designated solicitation agents, are available to provide assistance. Interested stakeholders can easily reach out and clarify any uncertainties they may have regarding their notes.
Conclusion and Insights
This recent development underlines Alfa, S.A.B. de C.V.’s proactive approach in engaging its investors and adapting to market needs. This solicitation process not only reflects the Company's robust strategy but also its intent to maximize shareholder value, ensuring a bright future for the Company and its shareholders alike.
Frequently Asked Questions
What is the significance of the consents obtained?
The consents indicate strong support from noteholders, which permits Alfa to amend the terms of their senior notes, enhancing financial strategy.
Who qualifies as an Eligible Holder?
Eligible Holders include qualified institutional buyers and non-U.S. persons compliant with relevant regulations in offshore transactions.
What does the Early Consent Fee entail?
Eligible Holders who provided timely consent will receive US$10.00 for every US$1,000 of their notes as an incentive for participation.
What additional measures are necessary for the amendments to take effect?
The amendments will become effective after specific conditions, including shareholder approval for a key spin-off, are met.
How can I contact the Company for more information?
Stakeholders can reach the Company and its agents through specified contact numbers for inquiries regarding the solicitation process.
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