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

Tender Offer Results: Cometa Energía and Tierra Mojada

On February 3, 2025, Cometa Energía, S.A. de C.V. announced the early results from its tender offers in collaboration with Tierra Mojada Luxembourg II S.à r.l. This joint effort reflects ongoing strategies to optimize their financial structures and engage with stakeholders effectively.

Cometa Energía is a notable variable capital corporation based in Mexico, while Tierra Mojada Luxembourg operates out of Luxembourg. Both entities are under the umbrella of Saavi Energia, which has made significant strides in the power generation market in Mexico.

Overview of Tender Offers

Cometa and Tierra Mojada commenced their tender offers on January 17, 2025, with the aim to purchase up to $100 million of Cometa's 6.375% Senior Secured Notes due 2035 and up to $115 million of Tierra Mojada's 5.750% Senior Secured Notes due 2040. The tender offers were designed to provide cash to noteholders, enhancing liquidity while allowing the Offerors to manage their existing debt.

The early tender date was set for January 31, 2025, with results indicating substantial interest in the offers. As reported, a combined total of approximately $433 million worth of Cometa notes and $331 million worth of Tierra Mojada notes were validly tendered by that date, despite neither Offeror accepting any securities for purchase as of that deadline.

Key Financial Metrics

The following are key financial highlights from the tender:

• - 6.375% Senior Secured Notes due 2035:

- Original Principal Amount Outstanding: $860 million
- Current Principal Amount Outstanding: $660 million
- Aggregate Principal Amount Tendered: $433 million
- Total Consideration: $1,002.50 per $1,000 of principal (includes Early Tender Premium)

• - 5.750% Senior Secured Notes due 2040:

- Original Principal Amount Outstanding: $953 million
- Current Principal Amount Outstanding: $827 million
- Aggregate Principal Amount Tendered: $331 million
- Total Consideration: $932.50 per $1,000 of principal (includes Early Tender Premium)

These figures illustrate the strong interest expressed by current holders of the securities, setting the stage for a successful completion of the debt management initiative.

Conditions and Considerations

The completion of these transactions is not subjected to a minimum tender condition but hinges on the successful issuance of new senior unsecured notes by Saavi Energia. Funds raised from this new issuance will support the obligations under the tender offers. Investors participating in the tender should be mindful of the conditions and proration rules detailed in the official Offer to Purchase document.

Holders of tendered securities should note that they can no longer withdraw their commitments once they have been submitted. It’s essential for them to understand both the potential benefits of liquidity and the conditions tied to their participation in these offers.

Future Outlook

Saavi Energia is identified as the largest private power generator in Mexico following the Federal Electricity Commission, with a robust portfolio and more than 3,700 MW in generation capacity. The success of these tender offers could strengthen their financial position, enhance future capital undertakings, and affirm their commitment to growth in the energy sector. As they navigate through these offers, both Cometa and Tierra Mojada demonstrate their commitment to financial management and stakeholder engagement amidst a dynamic market environment.

For additional details, stakeholders are encouraged to reach out to the respective financial institutions involved in this transaction for tailored insights and inquiries.