Comerci Clinches Restructuring

Mexican retailer Comercial Mexicana has reached a debt-restructuring agreement with the majority of its creditors, it says, and will issue around $1.54bn in various tranches. The new debt has an average maturity of 6.7 years, it says, and consists of MXP16.32bn in fixed-rate debt paying 9.25% and floating-rate debt paying TIIE plus 275bp-400bp, as well as $226.3m in 7% dollar bonds. It also includes a cash payment of $45m on closing, and a lock-up fee for certain bondholders equivalent to 1 percentage point of principal amount held. Comerci, which defaulted in 2008 after severe derivatives losses, will put the deal to a shareholder vote June 11, and seek the necessary approval of creditor committees. The agreement excludes MXP1.5bn in domestic bonds recently swapped for new 7-year notes, and the new debt is backed by the company’s real estate holdings and stock. Fitch withdrew Comerci’s D rating.