Axtel, S.A.B. de C.V. and Alestra S. de. R.L. de C.V. Secure $750 Million Syndicated Financing

January 21, 2016

New York, NY -- Paul Hastings LLP, a leading global law firm, announced today that it represented Mexican telecommunications companies Axtel, S.A.B. de C.V., as borrower, and Alestra S. de. R.L. de C.V., as guarantor, in a US$750 million senior unsecured loan from Banco Nacional de México, S.A., Integrante del Grupo Financiero Banamex, División Fiduciaria, Banco Mercantil del Norte, S.A. Institución de Banca Múltiple, Grupo Financiero Banorte, BBVA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Banco Santander (México), S.A. Institución de Banca Múltiple, Grupo Financiero Santander México.

The proceeds will be used to redeem Axtel’s outstanding international bonds. The redemption of Axtel’s bonds is part of a merger process pursuant to which Axtel will merge with Alestra’s holding company, with Axtel as the surviving company and Alestra as a wholly-owned subsidiary of Axtel. As a result of the merger, which will become effective February 15, 2016, Alestra’s parent company Alfa, S.A.B. de C.V., one of the largest conglomerates in Latin America, will acquire a 51% stake in the merged entity via Axtel’s issuance of new shares and Axtel will become an Alfa subsidiary.

Latin America partners Joy Gallup and Michael Fitzgerald led the Paul Hastings team, which also included of counsel Pedro Reyes, associate Todd Schmid and international associate Gerardo Guajardo-Andrade.

At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.