Iusacell Announces US$416mn Exchange Offer

Mexican mobile operator Grupo Iusacell has launched a solicitation of consents to restructure debts totaling US$416mn, the company said in a statement.

The offer applies to US$190mn of tranche A loans, US$76mn of tranche B loans and US$150mn of 10% senior notes due in 2004.

Iusacell is offering to exchange the tranche A bank loans for new senior floating rate first lien notes due 2011 accruing interest at three-month Libor plus 4%. For the tranche B loan and its senior notes Iusacell is offering its new 10% senior subordinated second lien notes due 2012.

The plan is in accordance with an agreement reached with majority creditors that hold approximately 58% of the company's indebtedness.

Iusacell intends to effect the exchange through a voluntary exchange or the filing of a reorganization plan pursuant to the Mexican Business Reorganization Act, the statement added.

The majority creditors have agreed, subject to certain conditions, to timely tender their indebtedness and grant their consents in the exchange offer, the statement said.

BNamericas.com"

Posted to the site on 26th May 2006