New York -- Paul Hastings LLP, a leading global law firm, announced today that it represented Mexican telecommunications company Axtel, S.A.B. de C.V., as borrower, in a senior unsecured term loan facility with HSBC Mexico S.A., as sole lead arranger and bookrunner and HSBC Bank USA, N.A. as administrative agent.
The “Dollar denominated Peso-pay” facility was fully funded by HSBC initially in the amount of the Mexican peso-equivalent of US$300 million to meet year-end timing targets, and will be syndicated in the coming weeks.
The proceeds are being used to pay off all of Axtel’s outstanding dollar loans under its existing senior unsecured syndicated loan facility led by Banco Nacional de México, S.A., Integrante del Grupo Financiero Banamex. Axtel recently issued dollar-denominated bonds in the international markets, and used the proceeds of the bonds to pay down a portion of the Banamex loan facility. This financing represents the termination of that facility and its partial replacement with peso loans, as the company manages its foreign exchange exposure.
Axtel’s parent company Alfa, S.A.B. de C.V., is one of the largest conglomerates in Latin America.
Latin America partners Michael Fitzgerald and Joy Gallup led the Paul Hastings team, which also included partner David Makso, of counsel Pedro Reyes, international associate Diego Ostos, and law clerk Hannah Kropp.
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