Total Play Unveils New Exchange Offer for Senior Notes

Total Play Launches Exchange Offer and Consent Solicitation

Total Play Telecomunicaciones, S.A.P.I. de C.V. ("Total Play," "we," "us" or "our") has recently initiated an exchange offer for its outstanding 6.375% Senior Notes due 2028. This offer aims to exchange all existing notes for newly issued 11.125% Senior Secured Notes due in 2032, alongside a cash payment of $450 for each $1,000 in existing notes tendered.

What is the Exchange Offer?

The exchange offer is designed for Eligible Holders of Existing Notes willing to submit Tender Orders by the set deadlines. By participating in the exchange, these holders will receive new notes along with a cash payment and will implicitly consent to proposed amendments regarding the existing indenture.

Key Benefits of This Offer

By opting into the exchange offer, holders benefit from significant modifications that intend to eliminate most restrictive covenants, revise the existing terms concerning mergers and consolidations, and amend other vital provisions in the Existing Notes Indenture.

Important Dates to Remember

The exchange offer and the consent solicitation will expire at 5:00 P.M. New York City time on February 6, 2025. Eligible holders must act quickly as there are also early tender considerations available for those who submit their Tender Orders by 5:00 P.M. on January 22, 2025. Those who deposit funds by January 21 will maximize their benefits by securing the highest amounts in new notes.

Understanding the Financial Details

Holders are required to make a New Money Deposit equal to 45% of the principal amount they are exchanging. Therefore, if an Eligible Holder exchanges $1,000 of existing notes, they need to deposit $450 in cash. This strategic move is aimed at improving Total Play's financial position and maintaining an efficient capital structure.

Eligibility and Codes

To participate, Eligible Holders need to request an Allocation Code from the Dealer Managers and Solicitation Agents. This code is essential for the validity of their submissions. Failing to include this unique code may lead to rejected offers, underscoring the importance of proper procedure.

New Notes Features

The New Notes will feature quarterly installments of principal payments starting from March 31, 2029. Carrying an interest rate of 11.125%, payments will be due on March 31, June 30, September 30, and December 31 of each year.

Redemption Provisions

Total Play also retains the option to redeem the New Notes early, offering investors a flexible and appealing investment under certain circumstances, particularly if its conditions improve after the public equity offering.

Proposed Amendments and Strategic Goals

The successful adoption of the Proposed Amendments hinges on securing consent from holders of over 50% of the outstanding principal amount of Existing Notes. These amendments aim to unlock greater operational flexibility, reflecting Total Play’s commitment to enhancing its market position.

Transaction Support and Safety Measures

Many holders representing a significant portion of the existing notes have entered into transaction support agreements, providing assurance of their participation in this exchange offer. Total Play is committed to maintaining transparency and compliance with legal standards throughout the offering process.

General Conditions and Final Notes

The exchange offer and consent solicitation are subject to the fulfillment of various conditions, including the valid submission of a minimum percentage of existing notes and adherence to the outlined deadlines. Eligible Holders should consult their intermediaries for exact instructions to navigate the process effectively.

Frequently Asked Questions

What is the purpose of the exchange offer?

The exchange offer aims to exchange existing notes for new notes with potentially better terms, helping to optimize Total Play's financial strategy.

Who can participate in the exchange offer?

Eligible Holders who have submitted a completed Eligibility Letter are authorized to participate in the exchange offer.

What happens if I miss the submission deadlines?

Missing the deadlines may disqualify you from participating in the exchange offer, losing the chance for cash payments and new notes.

Are there any fees associated with the exchange offer?

Typically, there are no additional fees for participating, but it's essential to check with your broker for specific conditions related to your holdings.

What benefits come from the new notes compared to the existing ones?

The new notes offer an upgraded interest rate and more favorable terms, enhancing potential returns for investors.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.