MEXICO CITY, Dec. 8, 2017 /PRNewswire/ -- Banco Inbursa, S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa ("Inbursa"), Inversora Carso, S.A. de C.V. ("Inversora") and Control Empresarial de Capitales, S.A. de C.V. ("Control Empresarial" and, collectively with Inbursa and Inversora, the "Shareholders") today announced that the 2017 Mandatory Exchangeable Trust (the "Trust"), a newly formed trust, has priced the offering of its mandatory exchangeable trust securities (the "Trust Securities"). The Trust Securities will be exchanged for part of the Shareholders' respective stake of Class A Common Stock shares of the New York Times Company ("Shares") at maturity or prior to maturity upon the occurrence of certain events. The Trust Securities were priced to investors at $100.00 per Trust Security for an aggregate purchase price of $250 million. The Trust also granted the initial purchasers of the Trust Securities an option to purchase up to an additional $37.5 million aggregate purchase price of its Trust Securities. The offering is being conducted in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act.
At the closing of the transaction, which is expected to occur on December 15, 2017, the Trust will enter into a variable prepaid forward purchase agreement with each of the Shareholders. At the closing of the offering of the Trust Securities, the Trust will pay to the Shareholders the proceeds received from the issuance of the Trust Securities, a portion of which will be used to fund amounts in respect of the Trust's expenses and amounts used to purchase U.S. Treasury securities, which will fund quarterly distributions on the Trust Securities. The Trust Securities will pay quarterly distributions of $1.2969 per Trust Security (with a quarterly distribution of $1.0951 per Trust Security for the first quarterly period). There will be 2,500,000 Trust Securities outstanding, or 2,875,000 if the initial purchasers exercise their option to purchase additional securities in full. The Trust will exchange each Trust Security for a certain number of Shares, between 4.6948 and 5.6338 per Trust Security, determined by reference to the volume-weighted average trading price of the Shares during the 40-trading day observation period ending shortly before the exchange date. The exchange date is expected to be the first scheduled trading day after December 1, 2020.
Neither the Trust Securities nor any of the Shares subject to the Trust Securities have been or will be registered under the Securities Act of 1933, as amended or the securities laws of any other state or jurisdiction, and may not be offered or sold without registration or an applicable exemption therefrom. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
For inquiries, please contact Victor Manuel Gutierrez Lopez at email@example.com.
SOURCE Banco Inbursa, S.A.; Control Empresarial de Capitales, S.A. de C.V.