Cobre del Mayo Initiates Exchange Offer for New Notes

Cobre del Mayo Launches Exchange Offer

Cobre del Mayo, S.A. de C.V. ("CDM") has announced an exciting exchange offer aimed at providing opportunities for Eligible Holders. This initiative involves exchanging all outstanding Senior Secured PIK Toggle Notes due 2030 for new Senior Secured PIK Toggle Notes due in 2032.

Understanding the Exchange Offer

The exchange offer is set to benefit the company's financial strategy, aligning its debt service obligations with expected cash generation. By reworking its financing structure, CDM aims to focus on maintaining viable cash flow, which will be directed toward efficiently servicing senior debt, optimizing operations, addressing contingent risks, and enhancing working capital levels. As a significant step, the company forecasts that no payments will be made in respect of the existing notes after the completion of the Exchange Offer.

Details on the New Notes

The new Senior Secured PIK Toggle Notes will be firmly guaranteed by specific wholly owned subsidiaries of Frontera Copper Corporation, S.A.P.I. de C.V., ensuring a robust backing for the new security. However, it is important to note that the new notes will not be backed by Frontera itself, which could influence the viability of this investment option.

Role of Investment Managers

BCP Securities, Inc. is engaging as the Dealer Manager for this exchange offer, guiding Eligible Holders through the process. Additionally, Ipreo LLC serves as both the Exchange Agent and Information Agent, playing a crucial role in facilitating the exchange process.

Accessing Information on the Offer

The new notes will not be registered under the Securities Act or relevant state securities laws, making the offer particularly specific to registered holders outside the jurisdiction of the United States. To qualify as Eligible Holders, participants must adhere to certain regulations outlined in the offering’s details.

Engaging with CDM

Eligible holders interested in obtaining the Confidential Exchange Offer Memorandum can do so by contacting Ipreo LLC at their offices in New York City. Queries can also be directed to Aaron Dougherty, the representative for Ipreo, ensuring that all interested parties can gain necessary insights and support.

Adhering to Local Regulations

This communication serves solely as an informational piece, clarifying that it does not represent an offer of securities, nor does it apply within jurisdictions where the Exchange Offer would breach local securities laws. Consequently, the acceptance of the offer will be barred if it does not comply with regional regulations guiding these transactions.

What Comes Next?

As Cobre del Mayo continues through this exchange process, the focus will remain on solidifying its financial position and improving operational efficiencies. This initiative not only reflects the company's proactive stance but also its commitment to fostering strong investor relationships.

Frequently Asked Questions

What is the objective of the Exchange Offer by Cobre del Mayo?

The objective is to restructure its debt to better align with expected cash flows, improving financial stability.

Who can participate in the Exchange Offer?

Eligible Holders who own the existing Senior Secured PIK Toggle Notes outside the United States can participate in the exchange offer.

What are the new notes being offered?

The new notes are Senior Secured PIK Toggle Notes due in 2032, aimed at providing more favorable terms for the company.

Who is managing the Exchange Offer?

BCP Securities, Inc. serves as the Dealer Manager and Ipreo LLC acts as the Exchange Agent and Information Agent.

What happens after the Exchange Offer is completed?

After the Exchange Offer concludes, CDM will not make any payments concerning the existing notes, focusing on the newly issued notes.

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