Orbia Advance Corporation's Successful Tender Offer Summary
Tender Offer Results Announced by Orbia Advance Corporation
Orbia Advance Corporation, S.A.B. de C.V. has recently completed an important step in its financial strategy by conducting a tender offer for its 4.000% Senior Notes due 2027. This tender offer aimed to purchase any outstanding notes from holders, and it was disclosed that as of the expiration time, an impressive amount had been tendered.
Details of the Tender Offer
The tender offer was designed to allow investors to sell back their senior notes with a maturity date of 2027. The deadline for acceptance was 5:00 p.m. New York City time on May 28, 2025. By this deadline, the company confirmed that approximately 85.05% of the outstanding amount, equating to approximately US$425,249,000, had been validly tendered. This represents a notable acceptance rate and highlights the interest from noteholders.
Settlement of the Tender Offer
The final settlement for the tender offer is expected to take place soon, with a projected date around June 2, 2025. All validly tendered notes that were not withdrawn will be honored for payment by Orbia. Furthermore, this includes notes that were submitted via a Notice of Guaranteed Delivery, which has certain delivery obligations. Investors who participated will receive full payment for their notes as per the established consideration.
Incentives for Participation
Among the incentives for holders to participate in this tender offer was the assurance that any amounts withheld would be supplemented by Orbia. This means the net amounts received by investors would match what they would have received without any tax deductions, thereby making the offer more attractive.
Conditions for Participation
As with any tender offer, there are conditions that must be met for successful completion. Orbia's obligations to purchase the notes are contingent upon specific criteria detailed in the Offer to Purchase documentation. It is essential that potential participants understand these conditions before tendering their notes.
Role of the Tender and Information Agent
D.F. King & Co., Inc. is serving as the Tender and Information Agent for this offer. Investors can reach out to them for additional information or clarification regarding the tender process. They can also assist with inquiries about the Offer to Purchase documentation.
Communication Channels
For any queries related to this tender offer, investors can contact J.P. Morgan Securities LLC, designated as the Dealer Manager of the tender process. The communication numbers and locations have been shared to ensure easy access to further details. Engaging directly with the financial institutions involved will provide clarity and assistance in navigating the tender offer.
Conclusion: A Step Forward for Orbia
This tender offer represents a significant development in Orbia's ongoing financial strategies. Successfully involving a large portion of its current notes enhances the company's ability to manage its debt effectively while also providing liquidity to its investors. As this process unfolds, stakeholders are encouraged to stay informed about how these actions will potentially influence future offerings and corporate financial health.
Frequently Asked Questions
1. What was the purpose of Orbia's tender offer?
The tender offer aimed to buy back outstanding 4.000% Senior Notes due 2027, allowing investors to sell their Notes back to Orbia.
2. When was the expiration time for the tender offer?
The expiration time was 5:00 p.m. New York City time on May 28, 2025.
3. How much of the total principal amount was tendered?
Approximately US$425,249,000, or about 85.05%, of the outstanding notes had been validly tendered by the expiration time.
4. Who is the Tender and Information Agent?
D.F. King & Co., Inc. acted as the Tender and Information Agent for the tender offer.
5. What is the expected settlement date for the tender offer?
The settlement for the tender offer is anticipated to occur on or around June 2, 2025.
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