Cydsa Concludes Tender Offer for 6.250% Senior Notes with Key Results and Next Steps

Cydsa's Tender Offer Results

Cydsa, S.A.B. de C.V., a prominent holding company in Mexico, has officially declared the expiration of its tender offer for its outstanding 6.250% Senior Notes due in 2027, signaling a pivotal moment in their financial operations. The tender offer, which came to a close on May 12, 2025, at 5:00 PM EDT, saw a healthy response from investors, aiming to bolster the firm’s capital structure and enhance future opportunities for investment.

Overview of the Tender Offer

On April 14, 2025, Cydsa announced the tender offer made for their Senior Notes, seeking to purchase a total of up to $25 million in cash, fostering a capital improvement strategy. The completion of this offer was shaped by a clear timeline and was rigorously structured under a defined set of conditions.

By the expiration date, a total of $9,723,000 in principal amount was validly tendered. This figure not only reflects investor confidence but also demonstrates the commitment of Cydsa to reorganize and strengthen its debt obligations. Cydsa aims to purchase all validly tendered notes by the settlement date which is projected to occur on May 14, 2025. After this event, the total outstanding amount of the Senior Notes will be reduced from $172,725,000 to $163,002,000, illustrating a significant step in financial restructuring.

Conditions and Eligibility

The tender offer was made specifically to holders in jurisdictions free from sanctions, adhering strictly to international regulations. Cydsa clearly defined a class of eligible participants, thereby enforcing compliance with several authorities including but not limited to the U.S. Department of Treasury and the United Nations Security Council. As stipulated, any notes tendered from jurisdictions considered as 'Sanctioned Countries,' such as Russia and North Korea, were not eligible for acceptance in this offer.

Additional Information for Investors

Goldman Sachs & Co. LLC served as the dealer manager for this tender offer, providing necessary resources and guidance for interested parties. Investors who sought further clarification were encouraged to reach out to Goldman Sachs directly at designated contact numbers for inquiries. Additionally, D.F. King & Co, Inc. was appointed as the information and tender agent, ensuring all interested parties had access to pertinent offer documents regarding the tender offer.

About Cydsa

Founded in 1945, Cydsa has evolved into a diversified industrial powerhouse based in San Pedro Garza Garcia, Nuevo León, Mexico. Its operations extend across various sectors including specialty chemicals and energy solutions, marketing over 100 products in more than 15 countries globally. Cydsa is particularly noted for its innovative strategies related to hydrocarbon storage, being pioneers in the underground storage solutions within Mexico and Latin America.

Cydsa's forward-looking strategy remains firmly rooted in expanding its operational capacity while effectively managing its financial obligations, thus, continuing to position itself for sustainable growth and market leadership.

Looking Ahead

In the wake of these changes, Cydsa is expected to engage in further financial maneuvers to optimize its market potential while navigating the complexities of the global economic landscape. As it moves through this transitional phase, stakeholders can anticipate continued updates in regard to its operational advancements and financial health. Investors are advised to monitor the company's forthcoming announcements closely for further insights.

Cydsa’s commitment to transparency and proactive reporting remains steadfast, as reflected in their outreach to stakeholders regarding this tender offer and their broader financial strategies going forward.