ANNUAL INTEGRATED REPORT 2021
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ANNUAL INTEGRATED REPORT 2021 | AXTEL
Cash Flow
As of December 31, 2021, cash flow from operating activities reached
Ps. 3,292 million, compared to a cash flow of Ps. 4,208 million as of
December 31, 2020.
As of December 31, 2021, the Company had generated (used) cash
flows from investment activities for (Ps. 1,268 million), compared to Ps
729 million as of December 31, 2020. Investments in property, systems
and equipment and intangibles were (Ps. 1,533) million as of December
31, 2021, and Ps. 1002 million as of December 31, 2020. The 2020 figure
includes a benefit of Ps. 3,145 million from the data centers divestment,
without considering this benefit, investments totaled Ps. (2,144) million.
As of December 31, 2021, the cash flow (used in) generated by financing
activities was Ps. (3,602) million, compared to Ps. (2,601) million as of
December 31, 2020.
As of December 31, 2021, the net debt to EBITDA ratio and the interest
coverage ratio were 3.1x and 3.3x, respectively. Likewise, as of December
31, 2020, the net debt to EBITDA and interest coverage ratios were at
2.0x and 5.1x, respectively. Pro forma interest expenses are used for the
calculation of interest coverage ratio.
Liquidity and Capital Resources applicable for years 2021,
2020 and 2019
On November 9, 2017, Axtel issued Senior Notes in the
international market and listed on the Irish Stock Exchange
under a private offering under Rule 144A and Regulation S of
the Securities Law from 1933 of the United States of America,
for an amount of US$ 500 million, gross of issuance costs of
US$7 million. The Senior Notes will accrue an annual coupon of
6.375% maturing in 7 years. The proceeds were mainly used to
prepay the existing debt related to the syndicated loan signed on
January 15, 2016, and various transaction costs and expenses. In
March 2021, Axtel prepaid US $60 million of its Notes at a price
of 104.781%, with the remaining resources from the data center
transaction formalized in January 2020. To date, the balance of
the Notes is US$ $440 million.
Additionally, Axtel has a bilateral loan with Export Development
Canada for up to US$50 million, or its equivalent in pesos, due in
June 2024. On September 27, 2021, the Company prepaid US $20
million of the loan principal in dollars. As of December 31, 2021,
the drawn balance is US $29 million.
Although the Company believes that it will be able to meet its
debt obligations and finance its operating needs in the future
with the operating cash flow, the Company may periodically seek
to obtain additional financing in the capital market depending
on market conditions and its financial needs. The Company will
continue to focus its investments on fixed assets and manage its
working capital, including the collection of its accounts receivable
and the management of its accounts payable.
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