Vitro Offers Exchange

After months of trying, Mexico’s Vitro has launched an offer to bondholders, this time with the support of its largest creditor, Fintech Advisory, it says. The glassmaker is offering cash and new securities to holders of its $300m in 8.625% of 2012 bonds, $216m in 11.750% of 2013s and $700m in 9.125% of 2017s. The move, which follows past proposals that have been rebuffed by creditors, is intended as a step toward achieving a debt restructuring carried out under Concurso Mercantil, Vitro says. The cash buyback portion offers holders up to $100m at a price of $500-$575 per $1,000 in principal, with the price to be reached through Dutch auction. Alternatively, holders can opt to exchange old bonds for new ones, receiving – for each $1,000 principal – $562 in new 8.000% of 2019 bonds, $66 in 10.500% of 2015 mandatorily convertible debentures, and a cash payment equal to accrued interest. An additional cash payment would come from any funds left in a trust used for a cash buyback that remains after the repurchase is complete. Both offers expire December 1. Vitro says creditors can expect a 68%-73% recovery. Rothschild is Vitro’s financial advisor. Vitro says no dealer manager has been retained for the offers. Vitro defaulted in 2009, as the global recession hurt revenue and the company suffered more than $300m in derivative losses.