MONTERREY, Mexico, Oct. 13, 2016 /PRNewswire/ -- Arendal, S. de R.L. de C.V. ("Arendal") hereby announces that Arendal and an ad hoc group representing the majority of the holders of Arendal's 10.50% Medium Term Notes due 2016 (the "Existing Notes"), which matured on May 23, 2016, have reached a mutual understanding with respect to the principal terms of the refinancing of the Existing Notes (the "Refinancing").
The principal terms of the new notes (the "New Notes") to be issued in exchange for the Existing Notes include a fixed interest rate of 11.5% per annum (or 12.5% per annum in the case of interest that Arendal elects to capitalize pursuant to a payment-in-kind option that may be exercised for interest periods ending prior to December 31, 2018) and a maturity date of June 30, 2021. The parties are in the process of negotiating the definitive documentation for the Refinancing and intend to implement the Refinancing through an exchange offer of the Existing Notes for New Notes in the near future.
This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the New Notes nor an offer to purchase Existing Notes.
Arendal is a leading engineering, procurement and construction, or EPC, company operating in Mexico. Since its inception in 1995, Arendal has provided a full range of EPC services, including feasibility studies, acquisition of rights of way, conceptual design, engineering, procurement, project and construction management, construction, maintenance, technical site evaluations and other consulting services.
This announcement contains certain forward-looking statements regarding the future events or the future financial performance of Arendal. These statements reflect management's current views with respect to future events or financial performance, and are based on management's current assumptions and information currently available and are not guarantees of Arendal's future performance. The timing of certain events and actual results could differ materially from those projected or contemplated by the forward-looking statements due to a number of factors including, but not limited to those inherent to operating in a highly regulated industry, strong competition, commercial and financial execution and economic conditions, among others.