MEXICO CITY, Nov 18 (Reuters) - Office Depot de Mexico will use a favorable exchange rate to its advantage and pay $350 million in dollar-denominated debt years before the due date, its parent company Grupo Gigante said on Friday.
In a statement sent to Mexico’s stock exchange, retailer Grupo Gigante said the company will pay the debt, which is due in 2020, on Dec. 19 of this year.
It will make the payment using cash from its operations, $200 million in capital contributions from shareholders, and a 3 billion peso ($145 million) loan from a development bank, benefitting from a currency hedge of 19.02 pesos per dollar.
Grupo Gigante purchased the 50 percent stake of the Mexican unit of Office Depot Inc. that it did not already own in a deal worth 8.78 billion pesos ($691 million) in 2013. ($1 = 20.6250 Mexican pesos) (Reporting by Adriana Barrera, Writing by Natalie Schachar; Editing by Kim Coghill)