Credito Real eyes new bond to buy back 2019s

miércoles 6 de julio de 2016 14:40 GYT
 

By Davide Scigliuzzo

NEW YORK, July 6 (IFR) - Mexico's consumer finance lender Credito Real will begin a series of investor meetings on Friday, ahead of a potential US dollar bond sale to finance the buyback of its 7.5% 2019s.

The company, rated BB+/BB+, has hired Barclays, Deutsche Bank and Morgan Stanley to arrange the meetings, which will take place in London on July 8, Boston, Los Angeles and Lima on July 11, and New York and Santiago on July 12.

Proceeds from the sale will help finance a tender on Credito Real's 7.5% 2019s, on which the company has US$425m outstanding, according to Thomson Reuters data.

Bondholders who tender by the early bird deadline of July 19 will receive US$1,057.50 for every US$1,000 in principal. Those tendering their notes after that date but before the final deadline of August 2 will receive US$1,027.50 for every US$1,000 in principal.

In conjunction with the tender, Credito Real on Wednesday also announced a consent solicitation on the 2019s to eliminate substantially all of the covenants on the notes, remove certain events of default and shorten the minimum notice period required for redemption. (Reporting by Davide Scigliuzzo; editing by Shankar Ramakrishnan)