Nestle Ecuador Preps Securitization

Nestle’s Ecuadorean unit plans to raise $74m through a 4-tranche accounts receivable securitization, according to a report from Fitch subsidiary BankWatch Ratings del Ecuador, which assigns a AAA domestic rating. In what would be its second such transaction, the food products company plans a $20m 3-year 7.25% coupon tranche, a $15 5-year 7.75% tranche, a $35m 7-year 8.25% piece featuring a 1-year grace period, and a $4m 7-year subordinated slice paying 8.75%. The deal is guaranteed by future sales in Ecuador and follows a $70m ABS in 2008. There is not yet a timetable for the deal, as it has not been approved by regulators.