GFMEGA Announces Recent Tender Offer has Reduced Upcoming Debt Maturities and Benefited 2022 Profits and Capitalization Levels

Guadalajara, Jalisco, Mexico, January 10, 2023. – Operadora de Servicios Mega, S.A. de C.V., SOFOM E.R. (“Mega” or the “Company”), a leading leasing and lending company in Mexico and the United States, is pleased to announce that it has reduced upcoming debt maturities and benefited 2022 profits and capitalization levels, following the recent purchase and subsequent cancellation of part of its outstanding 8.25% Senior Notes due in 2025.

The purchase and subsequent cancellation of US$12.883 million of bonds at US $500 for every US $1,000 of principal amount, followed the announcement on December 1, 2022, of a tender offer for up to US$100 million of Notes. The bonds tendered were retired at par, thereby helping profitability and capitalization levels, and reducing upcoming maturities. Following the announcement of the tender offer, the price of the bonds in the secondary market rallied close to the offer price, curtailing demand.

The relatively low take up of the tender offer compared to the US 100 million offered in a difficult environment for other Mexican NFBIs, reflects strong confidence in the company by the large majority of its bondholders who have chosen to remain invested.

“We are pleased that the vast majority of our bondholders have decided to continue holding our Senior Notes”, said Guillermo Romo, Chairman of the Board. “This reflects the Company’s prudent risk management, strong capitalization levels, continued access to capital markets for funding, and the positive outlook for profitability going forward.”

As previously announced, the payment for the US $12.883 million Senior Notes tendered was made on December 30, 2022. Following market purchases since issuance and the recent partial tender, the total outstanding maturity for the 2025 Senior Notes has fallen from an initial US $365.041mn to US $352.158mn, underlying the strong fundamentals and prudent risk management of the company since issuing its initial bonds.