Grupo IDESA, S.A. de C.V. Announces Commencement Of A Consent Solicitation for Its 7.875% Notes Due 2020

MEXICO CITY, July 20, 2015 /PRNewswire/ -- Grupo IDESA, S.A. de C.V. ("Grupo IDESA") announced today that it is soliciting consents (the "Consents") from the holders of its 7.875% Notes due 2020 (the "Securities") of which US$300.0 million in aggregate principal amount is outstanding, to certain proposed amendments with respect to the Securities (the "Proposed Amendments") to the indenture governing the Securities (the "Indenture") (the "Consent Solicitation").

The Proposed Amendments will provide Grupo IDESA with more operating flexibility to ensure that it may provide the necessary investment in order to reach project completion of both the Etileno XXI Project and the CyPlus Idesa Project.

Holders of Securities are referred to the consent solicitation statement, dated July 20, 2015, and the related consent letter (together, the "Consent Documents") for the detailed terms and conditions of the Consent Solicitation. The Consent Solicitation was commenced today and will expire at 5:00 p.m. (New York City time) on July 31, 2015, unless extended by Grupo IDESA (each such date and time, as the same may be extended by Grupo IDESA, is referred to as the "Expiration Time").  The Consent Solicitation is made solely by means of the Consent Documents.  These materials contain important information that holders of Securities should carefully read before any decision is made with respect to the applicable Consent Solicitation.

Only holders of the Securities as of 5:00 p.m. (New York City time) on July 16, 2015 (such date and time, including as such date and time may be changed by Grupo IDESA from time to time, the "Record Date") are entitled to consent to the applicable Proposed Amendments. In order to implement the applicable Proposed Amendments, Grupo IDESA and the trustee will enter into a supplemental indenture to the Indenture (the "Supplemental Indenture").  If the Supplemental Indenture is executed and the other terms and conditions set forth in the Consent Documents are satisfied or waived, then Holders of the Securities as of the Record Date will receive a cash payment equal to US$5.00 per US$1,000 principal amount of the Securities in respect of which the Consent Letter and Consents to the Proposed Amendments have been validly delivered and not validly revoked (the "Consent Fee").  Holders will be permitted to revoke the Consents at any time prior to the execution and delivery of the Supplemental Indenture.

In order to execute the Supplemental Indenture as contemplated by the Proposed Amendments, Grupo IDESA must receive Consents from Holders as of the Record Date representing at least a majority of the aggregate principal amount of the Securities (not including any such Securities that are owned by Grupo IDESA or any of its affiliates). 

Grupo IDESA reserves the right, in its sole discretion (1) to terminate or amend, waive or modify any of the terms of the Consent Solicitation, including the Consent Fee or the Record Date, at any time and for any reason, by giving notice to the Solicitation Agent and the Information Agent; (2) to extend the Consent Solicitation for any reason; and (3) not to extend the Consent Solicitation beyond the original Expiration Time or any date to which such Consent Solicitation has been previously extended.

The Solicitation Agent for the Consent Solicitation is:

Morgan Stanley & Co. LLC
1585 Broadway, Floor 04
New York, New York 10036
U.S.A.

The Information Agent for the Consent Solicitation is:

D.F. King & Co., Inc.
Banks and Brokers call:  +1 (212) 269-5550 (collect)
All others call toll-free:  +1 (866) 388-7452
E-mail: [email protected]

Any questions or requests for assistance or for copies of the Consent Documents or related documents may be directed to the Information Agent at its telephone number set forth above.  A holder as of the Record Date also may contact the Solicitation Agent at the following telephone number: +1 (212) 761-1057 (collect) or +1 (800) 624-1808 (toll-free); or such holder's broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitation.

THIS PRESS RELEASE IS NEITHER AN OFFER TO SELL NOR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY.  THIS ANNOUNCEMENT IS ALSO NOT A SOLICITATION OF CONSENTS TO ANY PROPOSED AMENDMENTS.  NO RECOMMENDATION IS MADE AS TO WHETHER HOLDERS OF THE SECURITIES SHOULD CONSENT TO ANY PROPOSED AMENDMENTS.

Grupo IDESA, S.A. de C.V.

Francisco Campos Herrera
Chief Financial Officer
Phone: +55 52 2789 2263
[email protected]

SOURCE Grupo IDESA, S.A. de C.V.

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