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Management Side
Corporacion Durango Amends Cash Tender Offer and Consent Solicitation
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Durango, Mexico, 22 August 2007 -- /PRNewswire/ -- Corporacion Durango, S.A.B. de C.V. (BMV: CODUSA), the largest integrated paper and packaging company in Mexico, announced today that it had amended the terms of its cash tender offer (the "Tender Offer") for any and all of its outstanding Series B Step Up Rate Senior Secured Guaranteed Notes Due 2012 (CUSIP No. 21986MAK1) to permit withdrawals of tendered Notes before the Modified Withdrawal Rights Termination Date (as defined below). As a result, the Offer to Purchase and Consent Solicitation Statement, dated 21 June 2007, and the related Consent and Letter of Transmittal, are deemed to have been amended as follows:

1) All statements in the Offer to Purchase and Letter of Transmittal to
the following effect:

"Notes tendered prior to 5:00 p.m., New York City [Eastern] time, on the Early Participation Date may only be properly withdrawn prior to 5:00 p.m.,
New York City [Eastern] time, on the Early Participation Date, but not
thereafter, except in the limited circumstances described below.
Notes tendered after 5:00 p.m., New York City [Eastern] time, on the Early
Participation Date and prior to 12:00 midnight, New York City [Eastern] time, on the Expiration Date may not be withdrawn, except in the limited
circumstances described below. Notes tendered and not subsequently
withdrawn prior to 5:00 p.m., New York City [Eastern] time, on the Early
Participation Date and Notes tendered after 5:00 p.m., New York City
[Eastern] time, on the Early Participation Date, and prior to 12:00 midnight, New York City [Eastern] time, on the Expiration Date may be withdrawn only if the company reduces the amount of the Offer Price, the Early
Participation Payment or the principal amount of Notes subject to the
Offer or is otherwise required by law (as determined by the company)
to permit withdrawal." are deemed to have been modified to read as follows:

"Any and all Notes tendered prior to 5:00 p.m., New York City [Eastern] time, on the Modified Withdrawal Rights Termination Date may be withdrawn at
any time prior to 5:00 p.m., New York City [Eastern] time, on the Modified
Withdrawal Rights Termination Date, but not thereafter, except in the
limited circumstances described below. Notes tendered and not
subsequently withdrawn prior to 5:00 p.m., New York City [Eastern] time, on the Modified Withdrawal Rights Termination Date may be withdrawn only if
the company reduces the amount of the Offer Price, the Early
Participation Payment or the principal amount of Notes subject to the
Offer or is otherwise required by law (as determined by the company)
to permit withdrawal."

2) The "Modified Withdrawal Rights Termination Date" will be a date
determined by the company in its sole discretion and is expected to be
the date on which the company enters into a definitive agreement on
terms and conditions satisfactory to the company with respect to the
issuance and sale of debt securities expected to result in the receipt
by the company of proceeds of at least USD 520 million.

3) The company will give oral or written notice of the proposed Modified
Withdrawal Rights Termination Date to the Depositary at least two
business days prior to the proposed Modified Withdrawal Rights
Termination Date. The company will also make a public announcement of
the proposed Modified Withdrawal Rights Termination Date as promptly
as practicable by public announcement thereof. Such announcement will
be made no later than 9:00 a.m., New York City [Eastern] time, on the first business day following the date on which the Modified Withdrawal
Rights Termination Date is determined. Without limiting the manner in
which the company may choose to make any public announcement, the
company shall have no obligation to publish, advertise or otherwise
communicate any such public announcement other than by issuing a
release to the Dow Jones News Service.


Procedures for validly withdrawing tendered Notes are set forth in the Offer to Purchase under the caption "Terms of the Tender Offer and Consent Solicitation-Withdrawal of Tenders and Revocations of Consents." A valid withdrawal of tendered Notes will be deemed a revocation of the related Consents. For a Holder to revoke a Consent, such Holder must withdraw the related tendered Notes.

Withdrawals of tenders of Notes may not be rescinded, and any Notes properly withdrawn will thereafter be deemed not validly tendered for purposes of the Tender Offer. Properly withdrawn Notes may, however, be retendered by again following one of the procedures described in the Offer to Purchase under the caption "Terms of the Tender Offer and Consent Solicitation-Procedures for Tendering Notes and Delivering Consents" at any time on or before the Expiration Date. However, holders of properly withdrawn Notes that are retendered will be eligible to receive only the Offer Price and not the Total Consideration.

In addition, Durango announced today that it has extended the period of the Tender Offer until 5:00 p.m., Eastern time, on 14 September 2007 (the "New Expiration Date"). All references to the "Expiration Date" in the Offer to Purchase and the Letter of Transmittal shall be deemed to be references to the New Expiration Date, and all references to "12:00 midnight, New York City [Eastern] time, on the Expiration Date" in the Offer to Purchase and the Letter of Transmittal shall be deemed to be references to 5:00 p.m., Eastern time, on the New Expiration Date.

The other terms and conditions of the Tender Offer remain unchanged. Durango may further amend or extend the period of the Tender Offer at Durango's sole discretion.

The Expiration Date previously announced on 17 August 2007, was 5:00 p.m., New York City [Eastern] time, on 24 August 2007. As of 5:00 p.m., Eastern time, on 21 August 2007, USD 370,980,723 in aggregate principal amount, or approximately 88.4%, of the outstanding Notes had been tendered and not withdrawn pursuant to the Tender Offer, including USD 359,730,986 in aggregate principal amount, or approximately 85.7%, of the Notes that were tendered and not withdrawn as of 5:00 p.m., Eastern time, on the Early Participation Date (as defined in the Offer to Purchase).

Durango has retained Merrill Lynch, Pierce, Fenner & Smith Incorporated to act as Dealer Manager for the Tender Offer and Consent Solicitation, and Global Bondholder Services Corporation to act as the depositary and information agent for the Tender Offer and Consent Solicitation.

Any questions or requests for assistance regarding the Offer may be made to the Dealer Manager and Solicitation Agent, Merrill Lynch & Co., Attention: Liability Management Group at (888) 654-8637 or (212) 449-4914. Questions or requests for assistance or additional copies of the Offer to Purchase and the related Letter of Transmittal may be directed to the Information Agent, Global Bondholder Services Corporation, toll free at (866) 794-2200 (bankers and brokers call collect at (212) 430-3774).

The tender offer is only being made pursuant to the Offer to Purchase and the related Letter of Transmittal. The tender offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction. The tender offer is not being made to any holders of Notes in Italy. In the United Kingdom, France, and Belgium, the tender offer is being made only to specified eligible holders of Notes, as set forth in the Offer to Purchase. Restrictions on the tender offer may also apply in other jurisdictions. The Offer is not being made to, and tenders of Notes and Consents by Holders will not be accepted from, any person in any jurisdiction that requires that the Tender Offer or the Solicitation or the distribution of the Offer Documents be made by a licensed broker or dealer.

About Durango

Durango and its subsidiaries are primarily engaged in the manufacturing and selling of packaging (corrugated boxes and multi-wall sacks), paper (containerboard, newsprint and bond), and other wood products (plywood) in Mexico and in the United States.

Source: Corporacion Durango, S.A.B. de C.V.
 

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