Bimbo pays down revolver
June 19, 2020
Mexican baker pays back $400 mln ahead of schedule in a "less uncertain environment"
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Mexico's Grupo Bimbo said Thursday that it prepaid $400 million from a revolving credit facility after posting strong results and sold cash flow generation in "a less uncertain environment."
Bimbo drew $720 million from the $2 billion revolver in late March to add to its cash holdings and refinance $200 million in bonds due in June this year. The company now has roughly $1.7 billion available through the credit line, it said in a securities filing.
Bimbo weathered a 98.5% drop in net income to MXN20 million ($881,000) in the first quarter this year, but it reported a 7% increase in net sales to MXN74.4 billion and an 11.4% jump in EBITDA to MXN8.9 billion, according to it latest financial results.
The Mexico City-based baker had MXN120 billion in total debt at the end of March this year with an an average maturity of 12 years and an average cost of 5.4% per year. It had 63% of debt in US dollars, 31% in Mexican pesos, 5% in Canadian dollars and 1% in euros.
In its last cross-border bond deal in September last year, the company priced $600 million worth of 30-year notes to yield 4.097%, or 215 basis points over US Treasury notes.
Shares in Bimbo fell 1.78% to close at MXN36.87 on Thursday.