Pinfra Readies Toll Road Concession Refi

Mexican infrastructure operator Pinfra is preparing to refinance debt tied to the Mexico-Toluca toll road concession, also known as Mextol. It plans to sell around MXP6.5bn-equivalent in 2030 bonds denominated in the UDI inflation-linked unit August 15. On the same day it will exercise a call option on the existing debt, MXP5.57bn-equivalent in 2030 UDI-denominated bonds issued in 2006. Holders will receive a call premium of 3.17%. The key to savings from the transaction, according to a banker managing the operation, is that existing debt includes both 5.00% senior debt and 8.85% mezzanine debt, which will be replaced with a single senior piece. The issuer is able to replace the debt at such as saving due to the fact that traffic has improved more than expected since 2006. Funds remaining after the repurchase can be used for additional construction. The bonds have yet to be rated, but the senior debt they replace was rated AAA on the national scale. ING is managing the transaction.