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

Cometa Energía and Tierra Mojada Launch Tender Offers

On January 17, 2025, Cometa Energía, S.A. de C.V. and Tierra Mojada Luxembourg II S.à r.l. announced their decision to initiate tender offers to purchase a total of $215 million of senior secured notes. This strategic move allows both companies to enhance their financial standing by acquiring their own securities from holders.

Overview of the Tender Offers

Cometa Energía has indicated that it will buy back up to $100 million of its 6.375% Senior Secured Notes, maturing in 2035, while Tierra Mojada is seeking to purchase up to $115 million of its 5.750% Senior Secured Notes, maturing in 2040. The respective CUSIP numbers for these notes are 144A - 20039F AA7 for Cometa and 144A - 30260L AA3 for Tierra Mojada.

These offers, deemed under certain conditions, are part of the companies' broader strategy to manage their debt effectively. The offers will close at 5:00 PM New York City time on February 18, 2025, unless they are extended or terminated early.

Terms of the Tender Offers

The tender offers provide notable terms for current security holders. For instance, completing the tender before January 31, 2025, allows holders to benefit from an early tender premium of $50 per $1,000 principal amount. To clarify, the total consideration for tendered securities will vary based on their acceptance by Cometa and Tierra Mojada.

• - For the 6.375% Notes, the total consideration is set at $1,002.50 per $1,000 principal amount.
• - For the 5.750% Notes, the amount is $932.50 per $1,000 principal amount.

Both offers are subject to maximum tender amounts, and holders are encouraged to carefully read the detailed offer document before making decisions. The Early Tender Date provides an opportunity for holders to minimize proration risks when submitting their securities.

Financial Context

This move is part of a larger strategy driven by Saavi Energia, the parent company of both Cometa and Tierra Mojada, which has established itself as the largest privately-owned power generator in Mexico. With significant backing from the government and extensive operational experience, Saavi Energia remains a critical player in the country’s evolving energy landscape.

The rationale behind the cash tender offers, according to Company officials, lies in optimizing the corporate debt load and managing future financial obligations better. This initiative underscores the ongoing trends in corporate finance, where companies are increasingly focusing on refining their balance sheets.

Conclusion

As the tender offers open for current holders of Cometa and Tierra Mojada’s securities, it presents a timely opportunity to assess investment portfolios and consider tendering securities under favorable terms. These cash offers signal a proactive management strategy amidst a dynamic market environment, inviting a closer look at how such financial maneuvers can stabilize and potentially enhance corporate value in the long term.