Axtel Successfully Prices a $190 Million Reopening of Its 9.0% Senior Unsecured Notes Due 2019

Mexican fixed-line integrated telecommunications company, announced the successful pricing of a $190 million add-on of its 9.0% Senior Unsecured Notes due 2019, sold pursuant to Rule 144A and Regulation S, originally issued on September 22, 2009, in an amount of US$300 million. These additional notes will be issued at a price of 102.5% per 100.0% of principal amount and will bear a yield to maturity of 8.609%.

The international offering is expected to close on March 22, 2010, subject to customary closing conditions. The proceeds of the transaction will be used (i) to prepay principal amount of indebtedness outstanding under our 2012 Term Loan Facility, (ii) to repay approximately US$32 million of short-term indebtedness, (iii) to fund approximately US$30 million of principal installments on indebtedness that will become due during 2010, and (iv) for general corporate purposes, capital investments and working capital requirements.

These additional notes and the guarantees thereof have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This announcement is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase. About AXTEL AXTEL is a Mexican telecommunications company that provides local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 39 cities and data and long distance telephone services to business and residential customers in close to 200 cities. AXTEL provides telecommunications services using a suite of technologies including FWA, WiMAX, copper, fiber optic, point to multipoint radios and traditional point to point microwave access, among others.

AXTEL's shares, represented by Ordinary Participation Certificates or CPOs, trade on the Mexican Stock Exchange under the symbol 'AXTELCPO', and are part of the IPC Index. AXTEL's American Depositary Shares are eligible for trading on The PORTAL Market, a subsidiary of the NASDAQ Stock Market, Inc.

 

Keywords: Broadband, Broadband Internet, Capital Investment, Communications, Electronics, Finance, Internet, Investing, Investment, Microwaves, Mobile and Wireless, Other Technology, Securities Act Of 1933, Technology, Telecommunications, World Wide Web, Axtel.