NEW YORK, Jan 26 (IFR) - Mexico’s white goods manufacturer Mabe is asking holders of its 7.875% 2019s to amend change of control clauses following the announcement of JV partner GE’s planned sale of its appliance business to China’s Qingdao Haier.
Holders agreeing to the changes will receive US$1.25 in cash for each US$1,000 principal amount of notes submitted by the expiration date of February 5.
General Electric announced earlier this month that it would sell its appliance business to Qingdao Haier for US$5.4bn in cash. The deal includes GE Appliances’ 48.4% stake in Mabe, which has a joint venture with GE.
Under the current indenture, the acquisition would trigger a change of control clause on the 2019s, requiring Mabe to repurchase the notes at a price of 101.00. The bonds have been trading at around 105.00, according to Trace.
JP Morgan is acting as solicitation agent on the deal. (Reporting By Paul Kilby)