Cometa Energía and Tierra Mojada Launch Cash Tender Offers

Cometa Energía and Tierra Mojada Begin Cash Tender Offers

This announcement pertains to offers for securities issued by Cometa Energía, S.A. de C.V. and Tierra Mojada Luxembourg II S.à r.l.

Cometa Energía, S.A. de C.V., a variable capital corporation organized under the laws of Mexico, and Tierra Mojada Luxembourg II S.à r.l., a private limited liability company established in Luxembourg, have announced their recent initiation of tender offers for cash. These offers entail purchasing up to $100,000,000 in aggregate principal amount of their 6.375% Senior Secured Notes due in 2035 and up to $115,000,000 of their 5.750% Senior Secured Notes due in 2040.

Tender Offer Details and Terms

The tender offers for these notes are being conducted under stringent terms and conditions outlined in the Offer to Purchase documentation. Each offer represents a significant financial strategy to optimize capital structure and is subject to various considerations, including the Series Maximum Tender Amount.

Key Components of the Offers

The purpose of the tender offers is to allow investors, also referred to as Holders, the opportunity to sell their securities at a predefined consideration prior to the expiration of the offer, which is scheduled for 5:00 p.m. New York time on a specified date. Holders are advised to carefully evaluate the Offer to Purchase before making any decisions regarding their securities.

What to Expect from the Tender Offers

Included in this offer are substantial benefits for timely tenders. Holders who act promptly are set to gain early tender premiums, enhancing their overall returns. The Total Consideration for validly tendered securities will be calculated at the time of acceptance, ensuring that investors reap adequate compensation for their decided investments.

Timeline for Tender Offers

The tender offers are set to conclude by a specified date, allowing holders sufficient time to act. Key dates include the Early Tender Date and the Expiration Date, with a clear indication of when settlements will commence, reflecting a well-structured timeline for the transactions.

Investor Guidance and Compliance

Holders must be informed that they have the discretion to withdraw securities under certain conditions before final acceptance. This structure ensures that investors can make informed decisions without unnecessary pressure.

Potential Outcomes and Benefits

Upon successful execution of these tender offers, both Cometa Energía and Tierra Mojada stand to enhance their financial standings significantly, positively impacting their future operations and growth strategies. The consolidation of debt instruments through this process positions the companies favorably within the market landscape.

Company Background and Market Presence

Saavi Energia, the parent company of both Cometa Energía and Tierra Mojada, is the largest private power generation entity in Mexico, with over 25 years of experience in the energy sector. This robust background in energy instills confidence in their operational strategies and overall financial viability of their offerings.

Frequently Asked Questions

What are the main objectives of the tender offers?

The primary aim is to buy back certain senior secured notes to optimize capital structure and management of overall debt levels.

Who can participate in the tender offers?

Registered holders of the applicable series of securities are eligible to participate in the tender offers.

What is the significance of the early tender premium?

The early tender premium incentivizes holders to submit their securities early to benefit from potentially higher returns.

What happens if the tender offers are oversubscribed?

If there’s significant interest beyond the maximum tender amounts, securities may be accepted on a pro rata basis.

How can holders redeem or withdraw their securities?

Holders retain the right to withdraw their tendered securities under specific conditions before the expiration date.

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