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Total Play Telecomunicaciones S.A. de C.V - Exchange Offer and Consent Solicitation 2024 (US) - News (FitchRatings)

RATING ACTION COMMENTARY - Fitch Rates Total Play's Secured Notes 'CCC+'/'RR4' on Announced Debt Exchange

04 APRIL 2024


Full announcement, including disclaimers and offer/distribution restrictions available via FitchRatings


Fitch Ratings - Monterrey - 04 Apr 2024: Fitch Ratings has assigned a 'CCC+'/'RR4' rating to Total Play Telecomunicaciones S.A.P.I de C.V.'s (Total Play) new secured senior notes due in 2028. Net debt proceeds will be used to exchange any and all of the outstanding 7.5% remaining unsecured notes due 2025.

The new senior secured notes are being issued as part of an exchange offer for Total Play's existing remaining USD361.5 million senior unsecured notes due in 2025. The new 2028 secured notes are secured by designated receivables, bear an annual interest rate of 10.5% and have an increasing amortization schedule, with 20% in 2026, 30% in 2027 and 50% in 2028, respectively.


Participant noteholders who tender their notes by early participation date will be exchanged at par. Participating noteholders have similar conditions that were offered in the Private Exchange with a group of investors for USD213.5 million made in Feb. 21, 2024 of its USD575 million senior notes due 2025. Different to the Private Exchange, the new 2028 notes will be listed and registered on the Singapore Exchange (SGX).


With the notes exchange Total Play is seeking bondholders to consent to amend the 2025 documents. The amendments eliminate substantially all restrictive covenants, certain events of default and other provisions contained in the Existing Notes Indenture. The proposed amendments will not eliminate the restrictive covenants from the original 6.375% senior notes due 2028.


Fitch does not deem the exchange offer a distressed debt exchange (DDE), as it is not expected to result in a material reduction in terms, and Total Play is not conducting the exchange to avoid a traditional payment default, bankruptcy or similar insolvency proceedings. The rating of the existing notes due 2025 and 2028 will be re-assed based on the final capital structure post debt exchange."


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TOTAL PLAY ANNOUNCES EXCHANGE OFFER AND CONSENT SOLICITATION TO THE HOLDERS OF THE REMAINING US$361.5 MILLION OF ITS SENIOR NOTES DUE 2025 - US89157FAA84 - USP9190NAB93

22 MARCH 2024


Full announcement, including disclaimers and offer/distribution restrictions available via Prnewswire:Source: Total Play Telecomunicaciones S.A de C.V


MEXICO CITY, March 22, 2024 /PRNewswire/ -- Total Play Telecomunicaciones, S.A.P.I. de C.V. ("Total Play"), a leading telecommunications company in Mexico, which offers internet access, pay television and telephony services, through one of the largest 100% fiber optic networks in the country, announced today the launch of an exchange offer and consent solicitation to the holders of the remaining US$361.5 million of its US$575 million Senior Notes due 2025 to exchange them for senior secured notes due 2028 (the "New Notes").  As previously informed, a successful private exchange agreement was reached on February 21, 2024, with a group of investors for US$213.5 million of such senior notes due 2025 (the "Private Exchange").

The exchange offer and consent solicitation of the New Notes announced today, proposes to exchange at par, to earmark accounts receivable from the master trust and transfer the flows and payments of such accounts to a payment source trust, bear an annual interest rate of 10.5%, and have an increasing amortization schedule of 20% in 2026, 30% in 2027, and 50% in 2028, respectively — the same conditions that were offered in the Private Exchange on February 21."


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