4 June 1998: Mexico“s leading glassmaker, Vitro S.A., said it planned to issue Pso 680 million, or US$ 80 million, of medium-term notes in the near future.
“Vitro has a credit line available to issu…
4 June 1998: Mexico“s leading glassmaker, Vitro S.A., said it planned to issue Pso 680 million, or US$ 80 million, of medium-term notes in the near future. “Vitro has a credit line available to issue debt worth Pso 1.6 billion, but it will issue practically half of this, some Pso 680 million, which is about equivalent to US$ 80 million,” said Hugo Jaime Garcia, director of corporate financing at Vitro. The director recently told reporters that the company did not plan to increase its debt level, adding it would use the new paper to extend the maturity of its current debt. Vitro has Pso 13.828 billion of outstanding debt. The paper, which the company will probably issue in the domestic market next week, will mature in three years, Garcia said. “Once we have the proceeds from this issue, what we will do is pay short-term credits,” Garcia said. “Above all, what we are seeking is to keep lowering the debt this year. At a consolidated level for Vitro as a group, our average credit maturity is five years,” Garcia said. He said the interest rate would depend on market conditions. Grupo Financiero Serfin will serve as lead manager for the issue, he said.