#Mexico #Mexico City #Cometa Energía #Tierra Mojada #Saavi Energia

Cometa Energía and Tierra Mojada Increase Tender Offer Amounts

On February 4, 2025, Cometa Energía, S.A. de C.V. and Tierra Mojada Luxembourg II S.à r.l. announced a significant adjustment to their tender offers for the repurchase of outstanding notes. This announcement comes following their earlier results from January 31, 2025, reflecting strong interest from investors.

The Tender Offers Explained

Both companies had initially set a maximum threshold for the purchase of their respective securities: Cometa for its 6.375% Senior Secured Notes due 2035 and Tierra Mojada for its 5.750% Senior Secured Notes due 2040. After receiving overwhelming acceptance from security holders, Cometa decided to raise its maximum tender offer from $100 million to $130.4 million, while Tierra Mojada increased its amount from $115 million to $132.6 million.

This decision demonstrates the companies' confidence in meeting their financing obligations while capitalizing on favorable market conditions. Notably, the tender offers relate to a total principal of up to $215 million combined for the two companies.

Market Reaction

The market exhibited a positive response immediately following this announcement, reflecting the robust financial health and strategic foresight of both Cometa and Tierra Mojada. The adjustment ensures that existing note holders are encouraged to participate, as these offers are set to close without any conditions requiring a minimum number of notes to be tendered.

Key Dates and Conditions

• - Early Tender Date: January 31, 2025
• - Expected Early Settlement Date: February 12, 2025

Holders of the securities who had validly tendered their notes by the early tender date and had them accepted for purchase will be entitled to receive the total consideration amount, which includes an early tender premium of $50 per $1,000 worth of securities.

The tender offers are designed to enhance the companies' capital structure and liquidity ratios. It's essential to note that holders of the securities who wish to participate should consult the detailed offer document, as the offers are contingent upon the successful conclusion of the new senior unsecured notes offering by Saavi Energia.

Who Are the Offerors?

Cometa Energía operates under Mexican laws and is an indirect subsidiary of Saavi Energia, the largest private power generator in Mexico by installed capacity. Tierra Mojada, based in Luxembourg, also adheres to international financial regulations and provides significant securities offerings to its investors.

The investment community regards these adjustments as a strategic move to bolster investor confidence and advance the financial health of both organizations.

This initiative is positioned as a proactive measure to strengthen their operating capital, enhancing the potential for future growth in a competitive energy market.

Investors are advised to assess this opportunity and evaluate their participation in light of both companies' promising financial strategies moving forward. Consult with your financial adviser or the designated information agents for further clarification on the process and conditions associated with the tender offers.