Axtel to divest 883 towers to American Tower Company

25 Jan 2013

Mexico’s Axtel has confirmed it will sell 833 towers to a unit of American Tower Corp for approximately USD250 million, Reuters reports, with the deal understood to be dependent on the closing of a debt exchange offer by the end of the month.

With the alternative telco having struggled to compete with its larger rivals, earlier this month Axtel confirmed that a majority of creditors had accepted a debt-restructuring offer after it had improved the terms of an earlier offer. The telco released details of the offer on 14 January, after some 40% of its creditors had rejected its initial offer; under its initial plan Axtel aimed to exchange USD765 million in senior notes due 2017 and 2019 for USD365 million in new notes due 2020, USD26 million in convertible notes due 2020 — convertible into 10% of Axtel’s equity — and a USD114.8 million cash payment.