Comision Federal de Electricidad Announces Commencement Of Consent Solicitations

MEXICO CITY, June 23, 2014 /PRNewswire/ -- Comision Federal de Electricidad ("CFE") announced today that it is seeking to amend each series of its outstanding debt securities listed in Table 1 below (the "Securities") to reflect the changes taking place in the regulatory landscape for the Mexican electricity sector.  The amendment (the "Proposed Amendment") will change the definition of Optional Purchase Event, included in the indenture governing the Securities, to modify the provisions relating to CFE's characterization as a legal entity under Mexican law and to its participation in the electric industry in Mexico.  The Proposed Amendment is intended to align the indenture with proposed changes in Mexican law resulting from reforms to the Mexican energy sector that are expected to be considered by the full Mexican Congress and implemented in the near future. 

For this purpose, CFE has commenced a solicitation of the holders of the Securities to consent to the Proposed Amendment to the indenture.  The solicitation of consents ("Consents") to the Proposed Amendment with respect to each series of Securities (the "Consent Solicitations,") is being made through CFE's Consent Solicitation Statement dated as of June 23, 2014 (the "Consent Solicitation Statement").

Holders of Securities are referred to the Consent Solicitation Statement for detailed terms and conditions of the Consent Solicitations.  The Consent Solicitations will expire at 5:00 p.m. (New York City time) on July 8, 2014 (the "Expiration Time"), unless extended by CFE, in its sole discretion with respect to the Consent Solicitation for any series of Securities.  With respect to each of these series of Securities, the earlier of (i) the Expiration Time for that series of Securities and (ii) the date on which the required Consents for that series of Securities are received is referred to as the "Consent Date."

Subject to certain conditions, CFE is offering to pay a consent fee of U.S. $1.50 per U.S. $1,000 principal amount of Securities to holders whose validly delivered Consent is accepted pursuant to the terms of the Consent Solicitation Statement. 

CFE has engaged Morgan Stanley & Co. LLC to act as global coordinator and solicitation agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc. as solicitation agents for the Consent Solicitations.  D. F. King & Co., Inc. has been engaged to act as the Information and Tabulation Agent for the Consent Solicitations.  Any questions or requests for assistance regarding the Consent Solicitations may be made to Morgan Stanley at 800‑624‑1808 (U.S. toll-free), +1‑212‑761‑1057 (collect) or +44‑20‑7677‑5040 (international), BofA Merrill Lynch at 888‑292‑0070 (U.S. toll-free), +1‑646‑855‑8988 (collect) or +44‑20‑7995‑3715 (international), or Deutsche Bank at 855‑287‑1922 (U.S. toll-free), +1‑212‑250‑7527 (collect) or +44‑20‑7545‑8011 (international).  Questions or requests for assistance or additional copies of the Consent Solicitation Statement and any related documents may be directed to D. F. King & Co., Inc. at [email protected] or at 800‑769‑4414 (U.S. toll-free) or +44‑20‑7920‑9700 (international).  Copies of the Consent Solicitation Statement and any related documents are available at www.dfking.com/cfe. 

This press release is for informational purposes only and is not a solicitation of Consents.  The Consent Solicitations are only being made pursuant to the Consent Solicitation Statement.  The Consent Solicitations are subject to certain conditions and present certain risks for holders who consent, as set forth more fully in the Consent Solicitation Statement.  CFE reserves the right to waive or modify any term of, or to terminate, the Consent Solicitations with respect to any of the series of Securities for any reason prior to the applicable Expiration Time.

SOURCE Comision Federal de Electricidad