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

Orbia Advance Corporation's Cash Tender Offer

On May 21, 2025, Orbia Advance Corporation, S.A.B. de C.V., a public limited company under Mexican law, made a significant announcement regarding its financial strategies. The corporation has launched a cash tender offer for all outstanding 4.000% Senior Notes due 2027, amounting to a total of $500 million. This strategic move comes at a time when the company aims to optimize its debt position while providing liquidity to its noteholders.

Details of the Tender Offer

The cash tender offer, termed the 'Tender Offer,' will allow holders of the 4.000% Senior Notes to sell their securities back to Orbia at an attractive price. According to the terms laid out in the documents dated May 21, 2025, the purchase price equals $1,000 for each $1,000 of outstanding principal amount. This buyback offer is contingent upon the fulfillment of certain conditions, which, if not satisfied, may lead to amendments or termination of the offer.

In addition, the offer period extends until 5:00 PM on May 28, 2025, at which point holders must adhere to specific protocols to ensure they can participate in this opportunity. Notably, the purchase will include accrued interest from the last payment date, making this proposition financially appealing for current noteholders.

Strategic Importance

The timing of this tender offer is indicative of Orbia's strategy to better manage its financial obligations and improve its overall liquidity position. By reducing the amount of outstanding senior notes, Orbia aims to strengthen its balance sheet and enhance capital flexibility, allowing the company to invest in core operations and potential growth areas.

This proactive initiative comes in the wake of the global economic landscape, compelling many corporations, including Orbia, to reassess their strategies and leverage flexible financing options as part of modern corporate governance practices. The offer is seen as a means to not only stabilize current conditions but also to position Orbia favorably for future endeavors.

Tender Offer Conditions

For noteholders to qualify for the tender offer, they must correctly tender their notes prior to the set expiration date. This includes adhering to the specified processes outlined in the Offer to Purchase document. The tender offer highlights that notes can be validly withdrawn any time before the withdrawal deadline on May 28, 2025, allowing flexibility for current noteholders.

The payment for successfully tendered notes that are accepted will occur shortly after the expiration date, likely on June 2, 2025. This timing aligns with the anticipated settlement process typical in such financial transactions.

Conclusion

Orbia Advance Corporation is thus positioned to not only navigate current market uncertainties effectively through the tender offer but also to optimize its financial strategy going forward. The focus remains on shareholder value and long-term sustainability in a dynamic economic environment. As such, stakeholders are encouraged to review their options closely and participate as appropriate, ensuring their investments align with the corporation's evolving narrative. The Tender and Information Agent for the process, D.F. King Co., Inc., is available for any inquiries regarding this significant financial maneuver.

For more details, noteholders are urged to visit the official website listed in the Offer Documents or contact the Dealer Manager directly, ensuring they stay informed and ready to act should they wish to take advantage of this opportunity.