Bimbo could use revolver to pay 2020 bond

Bimbo could use revolver to pay 2020 bond

Debt Loans Bonds Corporate & Sovereign Strategy Capital Markets Fixed Income Mexico

Mexico's Grupo Bimbo could use a $2bn revolving credit line to address an $800m 4.875% bond due in June next year, said a source at LatinFinance's 14th Cumbre Financiera Mexicana. 

"There are windows in the Mexican market, and the company might use one of this windows to come out and refinance the note, but if not, it can rely on the revolver," the source said.

Bimbo signed a five-year, $2bn revolver with 10 banks in October 2016. The facility was undrawn as of 31 December 2018, according to a company presentation.

Bimbo lowered its leverage to 2.8x EBITDA in 2018 and repurchased MXN1.2bn ($63.4m) in shares and MXN450m in local bonds. It also sold $500m in 5.95% perpetual notes. 

Bimbo had MXN89.8bn in total debt at the end of March this year with an average maturity of 10.3 years and an average cost of 6%, according to its latest financial results. 

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