Who is Grupo Bimbo?
Grupo Bimbo, the world’s largest bakery group, has announced its intention to fully prepay the 80 million ‘BIMBO 16’ debentures issued in 2016, which were set to mature on September 2 of the same year.
Background on ‘BIMBO 16’ Debentures
The debentures, known as ‘BIMBO 16,’ raised 8 billion Mexican pesos (approximately 462.6 million USD) in 2016 through a bond issuance mechanism called “clave de pizarra.” Grupo Bimbo now plans to prepay these debentures in full, as permitted by the terms outlined in Section “Pago por Amortización Anticipada (Make-Whole)” of the document governing the debentures.
Prepayment Details
Grupo Bimbo stated that the prepayment will be executed by the common representative, following the calculation of the prepayment price based on information provided. The company must notify the common representative at least two business days before the scheduled payment date, reserving the right not to prepay.
Additional Bond Issuance
Earlier in January, Grupo Bimbo announced plans to raise up to 15 billion Mexican pesos (approximately 835.2 million USD) via the issuance of two bonds in the local stock market.
Details of New Bonds
The bonds, labeled ‘BIMBO 26’ and ‘BIMBO 26-2,’ will be issued using the vasos comunicantes mechanism, with a maximum amount of 10 billion Mexican pesos (approximately 557 million USD) in the primary issuance. These bonds include an oversubscription option of 5 billion Mexican pesos (approximately 278 million USD).
- BIMBO 26 Bond: This bond will pay a fixed semi-annual coupon rate and have a 12-year term.
- BIMBO 26-2 Bond: This bond will pay a variable daily interest rate and have a 4-year term.
Allocation of Funds
The funds generated from these bond issuances will be allocated towards investments, working capital, debt refinancing, and operational expenses.
Credit Ratings
Both bond issuances received the highest local investment-grade ratings from S&P Global Ratings (‘mxAAA’) and Fitch Ratings (‘AAA(mex)’), signifying strong creditworthiness.
