Business Context and Reporting Period
Company: America Movil, S.A. de C.V. (Issuer) and Radiomovil Dipsa, S.A. de C.V. (Guarantor)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: February 16, 2005
Subject: Fifth Supplemental Indenture dated December 14, 2004, regarding the Base Indenture with JPMorgan Chase Bank, N.A. as Trustee.
Key Financial Metrics
This filing is a legal document regarding debt indenture amendments and does not contain financial performance data. The following metrics are not provided in the source text:
- Revenue: Not provided
- Profit: Not provided
- Cash Flow: Not provided
- Margins: Not provided
- Debt Levels: Not provided (Reference made to "Attributable Debt" definition only)
- Liquidity: Not provided
Material Changes
The filing details a specific amendment to the definition of "Attributable Debt" within the Base Indenture:
- Correction of Omission: The previous definition inadvertently omitted the discount rate required for calculating the present value of obligations in Sale/Leaseback Transactions.
- New Definition: "Attributable Debt" is now defined as the lesser of (1) the fair market value of the asset or (2) the present value of net rental payments discounted at a rate per annum equal to the discount rate of a capital lease obligation with a like term in accordance with Mexican generally accepted accounting principles.
- Scope: This amendment applies to the Base Indenture and its prior supplements. The definition for the 5.750% Senior Notes due 2015 (Fourth Supplemental Indenture) was already amended to be consistent with this change.
Guidance, Outlook, and Risks
Management Commentary: The filing states the amendment was made to cure an ambiguity and correct a defective provision without adversely affecting the interests of security holders. No forward-looking guidance or outlook is provided.
Risks and Contingencies: The document includes standard legal provisions regarding the separability of invalid provisions and limits the Trustee's responsibility for the validity of the indenture. No specific business risks or contingencies are discussed.
Investor Verification Checklist
- Verify the impact of the revised "Attributable Debt" definition on the company's leverage ratios and compliance with debt covenants.
- Confirm the specific discount rates used under Mexican GAAP for capital lease obligations to assess the calculation of attributable debt.
- Review the Base Indenture and prior supplemental indentures to ensure full consistency of the "Attributable Debt" definition across all debt series.
- Check for any subsequent filings that may disclose the actual financial impact of this definition change on reported debt levels.