ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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c. Prepayment of Senior Notes
On March 3, 2021, the Company prepaid the aggregate principal
amount of $1,197,210 (US$60 million) of the 6.375% Senior Notes
due in 2024 (the "Notes"), with the objective of strengthening its
financial structure and reducing interest expense.
Following this prepayment, the aggregate principal amount of
Notes outstanding is US$440 million. The partial prepayment was
made with cash funds obtained in the data center transaction
carried out in 2020.
Derived from this prepayment, the Company immediately
recognized the unamortised transaction costs in the consolidated
statement of income as of that date for $13,899.
d. Credit renewal with Export Development Canada
On May 25, 2021, the Company entered into an agreement with
Export Development Canada for the renewal of the bilateral
committed revolving loan agreement for up to US $50 million, or
its equivalent in pesos, extending its maturity from June 2021 to
June 2024. As of December 31, 2021, the drawn amount was US
$27 million and Ps. 50 million. For the portion in pesos, the interests
are payable monthly at a rate of TIIE 28 days + 1.75%, while for the
portion in dollars they are payable monthly at a rate of Libor 1M +
2.00%.
e. Debt prepayment
On September 27, 2021, the Company prepaid $400,560 (US$20
million) of the principal of the loan in US dollars maintained with
Export Development Canada maturing in 2024 and interest rate of
Libor 1M + 2.00%. After this prepayment, the amount outstanding
of the loan in its US dollar portion is US$27 million.
Derived from this prepayment, the Company immediately
recognized the unamortised transaction costs in the consolidated
statement of income as of that date for $481.
f. Impairment in investment in shares and accounts receivable
from Altán Redes S.A.P.I. of C.V. ("Altan")
The Company has a stockholding equivalent to 1.96% in Altán's
capital stock as of December 31, 2021,2020 and 2019. Likewise,
Axtel is a supplier of telecommunications and IT services for Altán.
On November 12, 2021, Altán was declared in concurso mercantil
(commercial insolvency) and from the day of publication of the
judgment in the Official Federal Gazette, Altán has an initial
conciliation period of 185 calendar days that may be extended for
two more periods of 90 calendar days.
As a result of the foregoing, Management recognized an impairment
of $290,114 for the value of its investment (See Note 25). As of
December 31, 2021, 2020 and 2019, the balance receivable from
Altán amounts to $304,429, $131,355 and $106,392, respectively,
before considering value added tax ("VAT"). Additionally, the
Company has a note receivable from Altán for $20,180.
2020
g. Impacts due to COVID-19
As a result of the outbreak of the infectious disease virus SARS-
COV-2 ("COVID-19") and its recent global expansion to a large
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