Mexico’s Waldo’s Heads to Finish

Syndications for Waldo’s, a Mexican discount retailer, are heard to be nearly complete, according to bankers close to the deals. Waldo’s is raising $120m in a two tranche loan – a $70m 5-year A-tranche at 450bp over Libor, and a second lien $50m B-tranche at 750bp over. The two tranches were flexed up by 50bp and 100bp respectively three weeks ago, reflecting participants’ wariness on participating in a highly levered transaction. The book is now heard to be practically full, with a few signings pending. Bankers away from the deal were skeptical about whether it would succeed given its highly levered nature and the fact some of the proceeds will repay a private equity sponsor. Elsewhere in loans, Cydsa, an exporter of chemicals and materials based in Monterrey, is heard close to wrapping up a $150m refinancing through a limited syndication. Citi has books on both deals.