Mexicana Reported Eyeing Dollar Bond, IPO

Mexican Airline Mexicana is preparing to sell dollar bonds as soon as June and eyes an eventual public listing, according to remarks from CEO Manuel Borja cited in local newspaper and wire reports. Mexicana seeks to raise $250m in international markets as part of an effort to improve its financial profile and improve transparency. “The bond sale, which improves our balance, is a first step, and within our objective to convert Mexicana into a public company at the beginning of next year,” Borja is report as saying. The bond would come with a $60m guarantee from Bancomext, and be used to refinance debt. Borja says Goldman Sachs has been hired to manage the bond transaction. Mexicana has not issued in the dollar markets since a 1999 $80m ABS transaction, according to Dealogic.