Grupo Bimbo secures $1.3 billion loan
MEXICO CITY — Grupo Bimbo S.A.B. de C.V. said it has secured a 5-year $1.3 billion syndicated loan from a group of 10 leading international financial institutions.
Proceeds will be used to refinance certain existing obligations under better terms and to fund in part the Sara Lee acquisition expected to close in mid-year, Grupo Bimbo said.
The company said the loan will be amortized in four semiannual payments starting in month 42, and further weights the currency mix toward U.S. dollars, maintaining a natural economic and accounting hedge.
Additionally, the loan is expected to improve the tenor of the company’s obligations, with average maturity rising to 5.5 years from 4.9 years, and the average financial cost declining to 3.9% from 5.7%.
“We value the continued confidence and support of our financial partners,” said Guillermo Quiroz, chief financial officer of Grupo Bimbo. “We will remain focused on maintaining a strong and flexible balance sheet, particularly in a volatile economic environment.”