Grupo Gondi shops for loan

Grupo Gondi shops for loan

Loans Debt Mexico Coronavirus

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Mexican paper packaging company Grupo Gondi is looking for a three-year, MXN1.25 billion ($56 million) loan to boost liquidity, according to sources close to the deal.

Credit Suisse is acting as the sole bookrunner and is currently gauging interest from other banks, sources said.

Due to ongoing pricing pressure in the loans market that began at the start of the COVID-19 pandemic, the new loan is expected to price slightly wider than the seven-year, MXN5.7 billion tranche that Gondi got as part of a two-part loan for MXN7.4 billion in October last year, one source said. The previous loan also included a 10-year tranche for MXN1.7 billion.

Gondi still has good credit fundamentals and a solid base of relationship banks, and the deal has been well-received in the market, the source said.

Credit Suisse was also the sole bookrunner on last year's loan and recruited seven other lenders – BBVA, BanBajío, Bancomext, Banorte, HSBC, Sabadell and Scotiabank – to join the deal as mandated lead arrangers.