Cydsa Extends Early Tender Deadline for 6.250% Senior Notes Tender Offer Due 2027

Cydsa's Tender Offer Extension Announcement

Cydsa, S.A.B. de C.V., a notable player in Mexico's industrial sector, has recently announced a significant development concerning its 6.250% Senior Notes due in 2027. In a bid to enhance participation among stakeholders, the company has extended the early tender time for its previously disclosed tender offer. This offer presents holders of the notes an opportunity to sell back their investments at favorable terms.

The tender offer, which initially emerged on April 14, 2025, allows Cydsa to buy back an aggregated principal amount of up to $25 million in its Senior Notes. This strategic move reflects Cydsa's ongoing commitment to optimize its debt structure while ensuring that it provides competitive incentives for noteholders to participate. The newly established deadline for holders to validly tender their notes has been pushed to 5:00 PM on May 12, 2025, creating a broader window for engagement.

Included in this tender offer, the Total Consideration that investors can receive is set at $985.00 for every $1,000 principal of the notes they hold and voluntarily tender. This amount comprises an early tender payment of $50.00 alongside a tender consideration of $935.00. Notably, any notes accepted in the process will also accrue unpaid interest from the last payment date, enhancing the overall attractiveness of the offer for potential participants.

As part of Cydsa's ongoing financial strategy, the firm has laid out specific conditions that must be met to accept these tender notes. These conditions include standard customary checks, such as ensuring requisite financing which forms a crucial part of the underlying tender offer. The company has stipulated that notes validly tendered beyond the specified deadlines shall not be eligible for withdrawal, thus encouraging early participation while implementing necessary financial safeguards.

This tender offer is presented exclusively to holders located outside jurisdictions that are deemed Sanctioned Countries, as identified by U.S. regulatory bodies. This ensures compliance while safeguarding Cydsa from potential legal pitfalls. Notably, countries such as Russia, Venezuela, and Iran fall under this classification and are not eligible for participation.

For those seeking clarity on the process, Goldman Sachs & Co. LLC has been appointed as the dealer manager for this tender offer. Investors with inquiries can reach out to their hotlines for guidance. Additional details, including the Offer to Purchase documentation, can be requested from D.F. King & Co, Inc., the information agent overseeing this tender process.

Cydsa, headquartered in San Pedro Garza Garcia, has established a robust presence spanning multiple cities across Mexico and specializes in various sectors ranging from specialty chemicals to energy processing. The company has emphasized its role in delivering innovative solutions, including Mexico's first underground hydrocarbon storage system in salt caverns, ensuring safe and efficient handling of hydrocarbons while advancing its commitment to environmental standards.

As Cydsa navigates this tender offer landscape, stakeholders are reminded to closely monitor developments and take into account the implications this extension may have on their investment decisions. The company's proactive approach reflects a strategic alignment with investor interests, aiming to foster a mutually beneficial relationship moving forward.

While speculation regarding future market conditions persists, Cydsa maintains that the current framework poised for this tender offer enables participants to engage on favorable grounds, paving the way for an effective debt management strategy that is set to enhance the company's overall financial health.

As the expiration date approaches, stakeholders are encouraged to make informed decisions and explore the advantages of this extended tender offer, ensuring they adhere to the specified requirements to fully benefit from this strategic opportunity.