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San Pedro Garza García, Nuevo León, July 02, 2018 – Vitro, S.A.B. de C.V. (BMV: VITROA), hereinafter “Vitro” or the “Company,” the leading glass producer in North
America, announces to the investors community that on Friday 29th of June at 10:00 p.m., it signed a syndicated loan agreement to refinance existing debt amounting to US $689 million.
With this, the Company will reduce their interest expense and improve the terms and conditions thereof. The new loan of US$700 million has a term of five years, which will
have an initial margin of 2.0 percent over LIBOR, and subsequently an applicable margin based on the Net Debt / EBITDA ratio.
BBVA Bancomer, S.A., Institución de Banca Múltiple; Grupo Financiero BBVA Bancomer (“BBVA”); HSBC México S.A., Institución de Banca Múltiple; and Grupo Financiero HSBC (“HSBC”), served as Joint Lead Arrangers and Joint Bookrunners.
The refinancing will result in an improvement in the main maturity profile, in addition to reducing interest expense in of approximately US$12 million per year, from the payment of each of the current loans. The new syndicated loan has a disposition period that expires on October 5th of this year, date in which it is expected to prepay both of the current credits at the latest.
The syndicated loan had an oversubscription of more than 60 percent with the participation of 10 banks, so the Company together with the leading banks are in the process of making the corresponding allocation among the participating institutions.
Adrian Sada Cueva, Chief Executive Officer mentioned: "We are very grateful to BBVA Bancomer and HSBC for the support and leadership in this important and successful
refinancing for our Company. We also thank the trust of all financial institutions that have shown interest in participating with us in the future of this great company. We are
committed to continue looking for profitable and orderly growth, maintaining a solid financial profile. "
Claudio Del Valle Cabello, Chief Financial Officer commented: "We were very pleased to see the enthusiastic response of various financial institutions to participate in this loan, which commits us to redouble our efforts to deliver the best results."
Vitro, S.A.B. de C.V. (BMV: VITROA) is the leading glass manufacturer in Mexico and one of the world’s major companies in its industry, backed by more than 100 years of experience. Founded in 1909 in Monterrey, Mexico, the Company has subsidiaries in the Americas, offering quality products and reliable services to meet the needs of two businesses: glass containers and flat glass. Companies of Vitro produce, process, distribute, and market a wide range of glass articles, which are part of the daily life of thousands of people. Vitro offers solutions for multiple markets, including cosmetic, pharmaceutical and toiletries, as well as architectural and automotive. The Company is also a supplier of chemical products and raw material, machinery, molds and equipment for industrial use. As a socially responsible organization, Vitro works on several initiatives aligned to its Sustainability Model, aiming to create a positive influence in the economic, social, and environmental aspects relevant to its stakeholders, in a responsible corporate management framework.