Axtel Sets Guide Of 7.75%

Mexican fixed-line phone operator Axtel, which is set to price a $250 million bond issue later today, Tuesday, has set a yield guidance of 7.75% area, reports Dow Jones. Axtel is planning to sell the 10-year senior unsecured notes to take out the $311 million bridge loan, due May 2008, used to acquire local telco group Avantel. Credit Suisse is acting as sole bookrunner. The notes, which mature January 2017, have been rated BB minus by Standard & Poor’s. Axtel bought Avantel last December for $500 million, paying $310 million in cash and assuming $190 million worth of net debt.