Axtel Upsizes Bond Issue

Mexico’s Axtel has raised $275 million through a 10-year bond issue that was upsized from $250 million on demand of $750 million. It was talked at 7.75% area and priced at 7.625% at par, or 275bp over Treasuries. The Ba3/BB- deal through Credit Suisse as sole lead was sold 67% to US investors and 33% to Europe. Proceeds will pay down a bridge to fund the acquisition of Avantel. Final maturity is February 1 2017. Axtel is also raising $205 million in the bank market to fund its acquisition of Avantel. The deal through Citigroup is priced at 187.5bp over Libor, on a leverage grid. It is a five-year with 36-months’ grace, said bankers considering participating. Comerica, HSBC, Scotia and Standard Bank have signed on as MLAs and the commitment deadline is February 8.