Mexico's Bio Pappel wraps up loan financing
By Paul Kilby
NEW YORK, May 27 (IFR) - Mexican paper company Bio Pappel has secured a US$225m five-year loan, effectively wrapping up a financing designed to retire debt and fund the purchase of notebook producer Corporacion Scribe.
Mexican banks Inbursa and Bancomext joined bookrunner Credit Suisse as MLAs on the dual-currency, amortizing loan, which will be funded this week.
The secured loan is split into a dollar tranche which pays Libor plus 500bp with a 1% Libor floor. A Mexican peso tranche, which comprised about 60% of the loan, carries a margin of 450bp over the local inter-bank rate TIIE.
Bio Pappel, formerly known as Corporacion Durango, is partly using proceeds to retire its outstanding 10% 2016s. In August last year, Fitch, which rates the credit single B, expressed concern about the refinancing of those bonds after the coupon stepped up to 10% from 7%. (Reporting By Paul Kilby; editing by Shankar Ramakrishnan)
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