-- On December 4, a private-equity firm offered to buy 100%
of Maxcom's shares, subject to several conditions including the
successful exchange of Maxcom's $200 million notes due 2014.
-- We are placing our 'CCC+' corporate credit and debt
ratings on Mexico-based telecommunications company Maxcom on
CreditWatch with negative implications on the possibility of a
distressed exchange of its notes.
-- We will resolve the CreditWatch placement as we receive
more information on the transaction and on the impact of the
notes exchange on the rating. Rating Action On Dec. 6, 2012,
Standard & Poor's Ratings Services placed its 'CCC+' corporate
credit and debt ratings on Maxcom S.A.B. de C.V. on CreditWatch
with negative implications.
The CreditWatch placement follows Maxcom's announcement of
private equity firm's, Ventura's, intentions to buy all of
Maxcom's outstanding Certificados de Participacion Ordinaria for
MXN2.90 each (about $54.2 million in total). Maxcom's board and
investors, representing 44% of outstanding stock, have approved
the deal. Ventura also plans to increase Maxcom's capital by $22
million. The closing of the transaction will be subject to
regulatory approvals, the sale of more than 50% of the stock,
and the successful exchange of Maxcom's existing $200 million
notes due 2014 for new bonds the company plans to issue.
We are uncertain about the new terms and conditions of these
new bonds. We are also uncertain on the business strategy
Ventura will have for Maxcom if the transaction occurs.
CreditWatch We will resolve the CreditWatch listing once the
transaction is closed. Potential outcomes of the CreditWatch
could be an affirmation or a downgrade. The outcome will
primarily depend on our view if the exchange of the $200 million
notes is distressed or not. We will analyze the implications of
the new ownership, management, and Ventura's business strategy
on Maxcom's business profile. However, we believe this
assessment will take a longer period of time. In our opinion,
while the new capital at this early stage will improve the
company's liquidity, the amount is still small compared with
necessary investments Maxcom must make to compete with its
Related Criteria And Research
-- Criteria For Assigning 'CCC+', 'CCC','CCC-', And 'CC'
Ratings, Oct. 1, 2012
-- General Criteria: Use of CreditWatch and Outlooks, Sept.
-- Key Credit Factors: Business And Financial Risks In The
Global Telecommunication, Cable, And Satellite Broadcast
Industry, Jan. 27, 2009
-- 2008 Corporate Criteria: Analytical Methodology, April
Maxcom Telecomunicaciones S.A.B. de C.V.
Corporate Credit Rating CCC+/Watch Neg/--
Senior Secured CCC+/Watch Neg CCC+
Recovery Rating 3