Vitro announces closure of debt refinancing

Vitro has signed a syndicated loan agreement to refinance existing debt

Vitro has announced that it has reached an agreement for a syndicated loan of USD 700 million to refinance its current debt.

Vitro, S.A.B. de C.V., the leading glass producer in North America, announces to the investors community that on 29 June at 10:00 p.m., it signed a syndicated loan agreement to refinance existing debt amounting to USD 689 million.
With this, the company will reduce its interest expense and improve the terms and conditions thereof. The new loan of USD 700 million has a term of five years, which will have an initial margin of 2.0% over LIBOR, and subsequently an applicable margin based on the Net Debt / EBITDA ratio.
BBVA Bancomer, S.A., Institución de Banca Múltiple; Grupo Financiero BBVA Bancomer (“BBVA”); HSBC México S.A., Institución de Banca Múltiple; and Grupo Financiero HSBC (“HSBC”), served as Joint Lead Arrangers and Joint Bookrunners.
The refinancing will result in an improvement in the main maturity profile, in addition to reducing interest expense in of approximately USD 12 million per year, from the payment of each of the current loans. The new syndicated loan has a disposition period that expires on 5 October this year, date in which it is expected to prepay both of the current credits at the latest.
The syndicated loan had an oversubscription of more than 60% with the participation of 10 banks, so the company together with the leading banks are in the process of making the corresponding allocation among the participating institutions.
Adrian Sada Cueva, Chief Executive Officer mentioned: “We are very grateful to BBVA Bancomer and HSBC for the support and leadership in this important and successful refinancing for our company. We also thank the trust of all financial institutions that have shown interest in participating with us in the future of this great company. We are committed to continue looking for profitable and orderly growth, maintaining a solid financial profile. “
Claudio Del Valle Cabello, Chief Financial Officer commented: “We were very pleased to see the enthusiastic response of various financial institutions to participate in this loan, which commits us to redouble our efforts to deliver the best results.”

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