Axtel Exchange Reaches 65%

Mexico’s Axtel has received acceptance from holders of 65% of the debt it is targeting in a bond exchange offer, it says, following the completion of the early acceptance deadline. In the offer scheduled to expire today, the telecom is targeting its outstanding 7.625% 2017 and 9.000% 2019 bonds. It is offering $594.61 per $1,000 principal, comprised of $500 in senior secured 2020 bonds, $44.61 in peso-denominated dollar-indexed 2020s and $50 cash. Holders accepting before the early deadline receive an additional $116 per $1,000 principal. The 2020 notes start at 7.0%, stepping up to 8.0% after the first year and 9.0% after year two. Axtel is rated Caa2/CCC+/B minus. The company also announced it has agreed to sell 883 telecommunication towers to MATC Digital, a subsidiary of American Tower Corporation, for $250m. In the deal, Axtel is to lease back space on these telecommunication sites from American Tower for initial minimum lease terms of 6-15 years.