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GCC Loan Still Far from Finish Line
Less than a week before the commitment deadline for a $200m 5-year loan, Mexico’s Grupo Cementos Chihuahua (GCC) is heard facing resistance from prospective participants. The amortizing deal, which pays Libor plus 125bp, has not gained the desired traction owing to a number of exogenous factors, say bankers close to the process. Appetite for the deal led by BBVA is dampened by general markets uncertainty, which forces credit committees to be more selective, as well a cement sector concerns. “Some of it is spillover from the sector,” adds a banker involved, noting that while GCC has reported strong figures, its peers like Cemex have had sub-par performance recently. A 5-year tenor is also tough, says a banker away from the deal. ABN AMRO is heard to have taken an MLA ticket, while Wells Fargo and Barclays appear to each have taken small pieces, of $20m or less.
