Axtel Announces Majority Participation in Exchange Offers

Fri Jan 18, 2013 11:26pm EST

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SAN PEDRO GARZA GARCIA, Mexico--(Business Wire)--
Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) ("AXTEL" or "the Company"), a
Mexican fixed-line integrated telecommunications company, today announced that
in respect to the pending exchange offers being made by its wholly owned
subsidiary Axtel Capital, S. de R.L. de C.V. (formerly Axtel Capital, S.A. de
C.V. SOFOM E.N.R.) to exchange (the "Exchange Offers") any and all of AXTEL`s
outstanding 7.625% Senior Notes due 2017 (the "2017 Notes") and 9.00% Senior
Notes due 2019 (the "2019 Notes", and together with the 2017 Notes, the "Old
Notes"), it has received tenders from holders of a majority in principal amount
of each series of the Old Notes in satisfaction of the minimum tender condition.


"The Early Tender Date results were consistent with our plans. As a result of
constructive discussions we had with various bondholders, we improved the
economic terms of the offer and obtained a satisfactory level of participation
that included the managers of accounts owning the two largest holdings of the
Old Notes," stated Mr. Felipe Canales, AXTEL`s Chief Financial Officer. "We
expect that when the exchange offer closes later this month, our
recapitalization strategy will be completed positioning AXTEL for a sustainable
period of profitable growth," added Mr. Canales. 

The consummation of the Exchange Offers and related consent solicitations are
subject to the conditions set forth in the Offer to Exchange, including, among
other things, the concurrent consummation of the sale-and-leaseback transaction
with MATC Digital, S. de R.L. de C.V., a subsidiary of American Tower
Corporation which has been previously disclosed by Axtel, and on other terms and
conditions. 

The complete terms and conditions of the Exchange Offers and consent
solicitations are de-scribed in the Offer to Exchange, copies of which may be
obtained by eligible holders by contacting D.F. King & Co., Inc., the
information agent for the exchange offers and consent solicitations, at 48 Wall
Street, 22nd Floor, New York, New York 10005, (212) 269-5550 (collect) or (800)
967-4612 (toll free), or axtel@dfking.com. 

The New Notes have not been registered under the Securities Act, or any state
securities laws, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements, and will
therefore be subject to substantial restrictions on transfer. 

The Exchange Offers are being made, and the New Notes are being offered and
issued, only to registered holders of Old Notes (i) in the United States who are
(a) "qualified institutional buyers," as that term is defined in Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act") or (b) "accredited
investors," as that term is defined in Rule 501(a) under the Securities Act,
that are institutions of the types described in clauses (1), (2), (3) and (7) of
Rule 501(a) and (ii) outside the United States and are persons who are not "U.S.
persons," as that term is defined in Rule 902 under the Securities Act. 

This announcement is for informational purposes only and does not constitute an
offer to sell or a solicitation of an offer to buy the New Notes nor an offer to
purchase Old Notes nor a solicitation of Consents. The Exchange Offers and
Consent Solicitations are being made solely by means of the Offer to Exchange
and the related Consent and Letter of Transmittal. 

About AXTEL

AXTEL is a Mexican telecommunications company with significant growth in the
broadband segment, and one of the leading companies in information and
communication technologies solutions in the corporate, financial and government
sectors. The Company serves all market segments - corporate, financial,
government, wholesale and residential with the most robust offering of
integrated communications services in Mexico. Its world-class network consists
of different access technologies like fiber optic, fixed wireless access, point
to point and point to multipoint links, in order to offer solutions tailored to
the needs of its customers. 

AXTEL's shares, represented by Ordinary Participation Certificates or CPOs,
trade on the Mexican Stock Exchange under the symbol 'AXTELCPO' since 2005. 

Forward-Looking Statements

This release contains certain forward-looking statements regarding the future
events or the future financial performance of AXTEL that are made pursuant to
the safe harbor for forward-looking statements provided by the Private
Securities Litigation Reform Act of 1995. These statements reflect management's
current views with respect to future events or financial performance, and are
based on management's current assumptions and information currently available
and are not guarantees of the Company's future performance. The timing of
certain events and actual results could differ materially from those projected
or contemplated by the forward-looking statements due to a number of factors
including, but not limited to those inherent to operating in a highly regulated
industry, strong competition, commercial and financial execution, economic
conditions, among others.

Axtel, S.A.B. de C.V.
Investor Relations
Adrian de los Santos, +52(81) 8114-1128
IR@axtel.com.mx

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