#Senior Notes #Mexico #Mexico City #Cash Tender #Orbia Advance

Orbia Advance Corporation Initiates Cash Tender Offer

On April 25, 2025, Orbia Advance Corporation, S.A.B. de C.V., a significant player in the financial market, announced the initiation of a cash tender offer for its outstanding 1.875% Senior Notes due 2026. This bold move is designed to allow holders of the notes, which collectively amount to $600 million, the opportunity to sell their securities back at a specified price under predetermined conditions.

The cash tender offer signifies Orbia's commitment to optimizing its financial standing and enhancing the flexibility of its debt profile. By paying cash for the senior notes, Orbia aims to reduce its overall debt obligations while also allowing bondholders the opportunity to liquidate their investments. Investors should note that the applicable Purchase Price for the notes will be outlined in the official Offer to Purchase and Consent Solicitation Statement set to be available shortly after the announcement.

In addition to the cash tender offer, Orbia will also conduct a consent solicitation to secure approvals from noteholders for certain amendments to the original indenture governing these notes. The objective is to facilitate specific modifications that would permit the discharge of the notes at any point in time. This consent process is crucial because the changes being proposed necessitate majority support from the holders of the outstanding notes.

Tender Offer Details

Under the tender offer, investors who choose to tender their notes will also be granting consents in relation to the proposed amendments with respect to these securities. It is important to highlight that noteholders must commit to both the tender of their notes and the provision of their consents together. This structured approach ensures that Orbia can streamline the process while enhancing liquidity for participating investors.

The Offer to Purchase and Consent Solicitation Statement specifies that the Tender Offer may undergo modifications, extensions, or even termination based on the prevailing circumstances or satisfaction of conditions outlined within the statement. Any changes will be communicated clearly to investors to ensure transparency during the offer period.

Orbia has stated that the tender offer will remain open until 5 PM New York City time on May 23, 2025, barring any extensions or amendments to the dates. Additionally, to benefit fully from the total consideration, noteholders are encouraged to make their submissions by 5 PM New York City time on May 8, 2025, which is identified as the "Early Tender Date."

Strategies for Investors

Investors should stay informed as Orbia prepares for several key dates within the tender offer timeline. The early settlement date is projected to occur three business days following the Early Tender Date, on or around May 13, 2025. In cases where notes are tendered after this date, payments will be processed on the Final Settlement Date, likely around May 28, 2025.

The offering comes at a critical time, as companies are restructuring in response to market conditions, making Orbia’s initiative a strategic move in the realm of corporate finance. The company's tender offer is not just a financial maneuver; it reflects its broader strategy to clarify financial planning and capital allocation towards future projects.

Conclusion

The cash tender offer initiated by Orbia Advanced Corporation represents a significant opportunity for noteholders while showcasing the company's proactive approach in managing its debt structure. By engaging investors in this way, Orbia is positioning itself to maintain financial flexibility and further its long-term strategic goals. Noteholders are advised to consult the Offer to Purchase and Consent Solicitation Statement for detailed terms and conditions, which will facilitate informed decision-making during this tender process.