Paul Hastings, a leading global law firm, announced today that the firm represented Citigroup and Credit Suisse as dealer managers in connection with a $350 million exchange offer by a subsidiary of Mexican telecommunication company, Axtel, S.A.B. de C.V.
Axtel issued $248,653,000 principal amount of its Senior Secured Notes due 2020 and the equivalent in Mexican Pesos of $22,189,690 principal amount of its Peso-denominated Senior Secured Convertible Dollar-indexed Notes due 2020, and paid $82,564,980 in cash to tendering holders. The debt exchange offer was used to restructure the company’s existing senior notes.
The transaction represents a rare instance, in which a “capital markets alternative” was successfully used to restructure a Mexican company’s debt, thereby avoiding the protracted and costly alternative of an out-of-court restructuring with hostile creditor groups. This also was the first international issuance of Peso-denominated secured convertible Dollar-indexed notes.
Latin America practice partners Michael Fitzgerald and Joy Gallup led the team, which also included partner Arturo Carrillo and of counsels Steven Sandretto and Pedro Reyes.
