Cavitex Finance launches tender offer for $160-M MCTR notes

MANILA, Philippines - Cavitex Finance Corp. has launched a cash tender offer to buy the $160-million 12-percent notes due 2022 that the Manila Cavite Toll Road Finance Co. (MCTR) issued in 2010.

Cavitex is a Cayman-based company owned by a group led by businessman Luis J.L Virata.

The tender offer will run until March 30 unless extended or terminated by the purchaser. A total of 160 million remains of the outstanding notes.

The total consideration for each $1,000 principal outstanding amount of notes validly tendered is the price equal to $1,000 plus accrued and unpaid interest from the last payment date but not including the settlement date.

Cavitex said the total consideration includes an early tender premium of $30 per $1,000 principal outstanding amount of notes payable.

In line with the tender offer, Cavitex is soliciting consents of the noteholders to enact certain proposed amendments in order to eliminate most of the restrictive covenants.

The tender offer and consent solicitation are conditioned upon the holders of notes representing more than 90 percent of the aggregate amount of notes outstanding.

Bank of America Merrill Lynch is the manager for the tender offer and consent solicitation.

MCTR is the financing vehicle for UEM – MARA Philippines Corp., which is wholly owned by Coastal Road Corp. UEM - MARA has rights under a toll road concession with the state-run Philippine Reclamation Authority to finance, construct, and operate the Manila-Cavite Toll Expressway for a term of 35 years to October 2033.