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Corporacion Durango, S.A.B. de C.V. Announces the Results of its Tender Offer
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Durango, Mexico, 05 October 2007 -- /PRNewswire/ -- Corporacion Durango, S.A.B. de C.V. (BMV: CODUSA), the largest integrated paper and packaging company in Mexico, announced today the results of its cash tender offer for any and all of its outstanding Series B Step Up Rate Senior Secured Guaranteed Notes Due 2012 (CUSIP No. 21986MAK1). The offer expired at 9:00 a.m., Eastern Time, on 05 October 2007.

Durango has been advised by the depositary that, as of the expiration date of the offer, of the USD 419,600,000 in aggregate principal amount of Notes outstanding, USD 377,450,950, or approximately 90.0%, had been validly tendered and not validly withdrawn pursuant to the offer, including USD 357,679,987, or approximately 85.2%, of the Notes that were tendered and not withdrawn as of 5:00 p.m., Eastern Time, on the Early Participation Date. Durango has accepted for purchase all Notes validly tendered and not validly withdrawn pursuant to the offer.

On the settlement date, which is expected to be 05 October 2007, Durango will pay noteholders who validly tendered and did not withdraw their Notes by 5:00 p.m., Eastern Time, on 05 July 2007, the total consideration of 103.125% of the principal amount of Notes, which includes an early tender premium in the amount of 3.125% of the principal amount of Notes, plus accrued and unpaid interest from the last interest payment date to, but excluding, the settlement date (which is expected to be approximately USD 1.32 per USD 1000 principal amount of Notes), for these Notes.

Durango will pay noteholders who validly tendered their Notes after 5:00 p.m., Eastern Time, on 05 July 2007, and did not withdraw their Notes by 9:00 a.m. Eastern Time, on 05 October 2007, the tender offer consideration of 100% of the Notes, which does not include the early tender premium, plus accrued and unpaid interest from the last interest payment date to, but excluding, the settlement date (which is expected to be approximately USD 1.32 per USD 1000 principal amount of Notes), for these Notes.

As a result of Durango acceptance of the tendered Notes, the Supplemental Indenture and the First Amendment to the Common Agreement have become effective.

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.

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 multiwall 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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