#Senior Notes #Mexico #Mexico City #Telecommunications #Total Play

Total Play Cancels Over $566 Million in Senior Notes Due 2028

Total Play Telecomunicaciones, S.A.P.I. de C.V., a prominent telecommunications provider in Mexico, has made a significant announcement regarding the management of its financial obligations. On February 10, 2025, the company disclosed the cancellation of approximately $566,034,000 worth of its 6.375% senior notes, which were due in 2028. This move is part of the company’s broader strategy to optimize its financial structure and improve its business operations.

The decision to cancel these senior notes comes in reference to the Indenture, which was originally established on September 20, 2021, and subsequently amended. Total Play successfully organized an exchange offer aimed at its existing notes, which included the option for holders to exchange their notes for newly issued 11.125% senior secured notes due 2032. This exchange indicates a transition towards securing more favorable terms for the company's debt obligations.

Out of the total $600 million principal amount of the senior notes issued, the company reported that $566 million were successfully tendered and subsequently canceled. In return for the exchange, the company collected $254,715,300 in cash, which was also part of the exchange offer conditions. This strategic action showcases Total Play's commitment to revitalizing its financial integrity and ensuring future growth in a competitive industry landscape.

Following this cancellation, approximately $33,966,000 of the senior notes will remain outstanding, indicating that the company still holds a significant portion of its original debt. The company engaged Barclays Capital Inc. and Jefferies LLC as dealer managers for this process, underscoring the importance and complexity of the transaction.

Total Play's cancellation of a substantial amount of senior notes reflects its ongoing efforts to navigate the challenging telecommunications market. As companies face increasing pressure from competitive dynamics and regulatory frameworks, maintaining robust financial health becomes more crucial than ever. It also illustrates a shift towards strengthening their capital structure, aiming for a more managed and strategic approach to debt.

In addition to these financial maneuvers, it's worth noting that the entire process is executed within a regulatory framework. Notably, the new notes cannot be offered in specific jurisdictions, such as the U.S., without proper registration under securities laws, which Total Play has acknowledged in its recent disclosures. This compliance aspect is critical as companies expand in international markets while adhering to local regulations.

Furthermore, the implications of such cancellations and exchanges are significant for stakeholders. While debt restructuring may initially seem daunting, it can lead to a healthier financial posture in the long term. Total Play is positioning itself to tackle future market conditions with renewed vigor, which may ultimately benefit its customers and investors alike.

As a leader in the telecommunications sector, Total Play continues to expand its service offerings, providing high-speed internet, pay television, and telephony services over one of the country’s most extensive fiber optic networks. With these restructuring efforts, the company aims to solidify its market presence and adapt to the evolving needs of its consumers.

Total Play’s proactive approach in managing its debts through strategic cancellations and exchanges serves as a case study for other companies navigating similar situations. Adopting a vigilant and flexible financial strategy can create opportunities to enhance stability and growth prospects within challenging market segments.

In its upcoming endeavors, Total Play will undoubtedly continue to explore innovative solutions aimed at fostering its growth, ensuring that it remains a competitive player in the telecommunications industry.