#Mexico #Mexico City #Telecommunications #Total Play #Debt Exchange

Total Play Announces Major Debt Exchange Offer

In a strategic move to bolster its financial health, Total Play Telecomunicaciones, the leading telecommunications provider in Mexico, has unveiled a substantial debt exchange offer amounting to $870 million. This initiative is part of the company's broader financial strategy aimed at improving liquidity and extending debt maturities, thus solidifying its market position.

Details of the Offer

The exchange offer will involve the conversion of existing senior notes with a total value of $600 million, which are due in 2028 and bear an interest rate of 6.375%. These will be swapped for new Senior Secured Notes due in 2032, offering a significantly higher interest rate of 11.125%. This enhancement reflects Total Play’s confidence in its operational efficiency and financial discipline.

The proposed exchange terms are attractive, as the new notes can be exchanged at par, with an amortization schedule set to commence in 2029 and spanning until 2032. This new structure is designed to relieve pressure on cash flow and increase overall financial flexibility for the company.

In conjunction with this offer, Total Play is also targeting a subscription to an additional cash amount of $270 million from the holders of the existing notes. At the launch of this offer, more than 50% of existing note holders, including notable financial entities like Cerberus Capital Management, Aviva Investors Global Services, and Amundi Asset Management, have already committed to this transaction through Support Agreements.

Market Response and Implications

Total Play's move comes on the heels of positive credit rating upgrades from prominent agencies such as Moody's and Fitch. These upgrades were influenced by the company’s improved financial outlook, marked by increased free cash flow and a significant market share. The exchange is expected to strengthen Total Play’s liquidity profile, ensuring that it can navigate future market challenges more effectively.

The anticipated benefits of this debt exchange are multi-faceted. By improving liquidity and extending debt maturities, Total Play is positioning itself to enhance operational efficiency while unlocking potential for further value creation across its services, which include internet access, pay TV, and telephony via an extensive fiber optic network.

Furthermore, this move highlights the company's strategic agility and financial discipline, showcasing its capability to access sophisticated financial markets for long-term funding, critical for sustaining growth and competitive advantage in the telecommunications sector.

Future Outlook

With this exchange offer, Total Play aims to not only stabilize its immediate financial commitments but also set the groundwork for future investments that will further strengthen its service offerings and customer satisfaction. The management believes that this strategic shift will enable them to create substantial value for investors while continuing to innovate within the telecommunications space.

As this story develops, Total Play remains committed to transparency, with details regarding the terms and conditions of the exchange outlined clearly in the Exchange Offer and Consent Solicitation Memorandum dated January 7, 2025. This proactive approach is designed to ensure that all stakeholders are well-informed and that the interests of investors are prioritized.

For updates on Total Play's financial strategies and more information about its services, visit their official website at Total Play.

About Total Play
Total Play is a leading telecommunications company in Mexico, recognized for delivering high-quality services over one of the largest 100% fiber optic networks in the nation. Driven by the vision of enhancing customers’ digital experiences, the company remains committed to leveraging technology for superior service delivery while focusing on operational growth and ecological responsibility.