Failed Junk-Oil Foray Is Forgiven by Alfa Bondholders in Mexico

Alfa SAB’s bond investors are in a forgiving mood.

The company is enduring growing losses from its stake in Colombia oil driller Pacific Exploration & Production Corp., which has missed interest Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term on its debt and seen its stock plummet. At last check, the maker of everything from car parts to cold cuts has lost $872 million since acquiring a 19 percent stake in the crude producer that it also unsuccessfully tried to take over last year.

Yet, instead of dwelling on its failure in the oil industry, Alfa’s bondholders are backing the company’s expansion into Mexico’s telecommunications market. Its $1 billion of notes have returned 8.6 percent since Alfa completed its purchase of Axtel SAB on Feb. 15., almost double the average gain in emerging markets. The Merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term of Alfa’s Alestra unit with Axtel allows the companies to take advantage of new laws that are seeking to boost competition in a market long dominated by billionaire Carlos Slim’s America Movil SAB.

“The merger is very attractive,” said David Neuhauser, managing director of Livermore Partners Inc., which oversees $100 million in global equity and debt, including Alfa bonds. “It’s a positive for their bonds and helps create another growth avenue for this company.”

--With assistance from Andrew Willis To contact the reporter on this story: Nacha Cattan in Mexico City at ncattan@bloomberg.net. To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net, Michael Tsang at mtsang1@bloomberg.net, Lester Pimentel

By: Nacha Cattan

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