MEXICO CITY, Jan 29 (Reuters) - Troubled Mexican telecom Axtel announced results on Tuesday of a debt exchange offer it launched last month intended to help it gain some breathing room and keep operations running.
The company said holders of $275 million in senior notes due in 2017 tendered $142 million, or 52 percent, while holders of $490 million in senior notes due in 2019 tendered $355 million, or 72.4 percent, for exchange.
In both cases, Axtel will cover the amounts tendered with a combination of new notes due in 2020, notes convertible into company’s equity and cash.
The debt deal is crucial for Axtel as it is tied to the planned sale of 883 transmission towers to a unit of American Tower Corp for about $250 million.
Axtel, which provides broadband and home-phone line services, has struggled to compete with bigger market players, including leader America Movil , owned by tycoon Carlos Slim.
Axtel shares were up 2 percent at 3.54 pesos on Tuesday morning.