Bimbo Looks to Issue Dollar Bond

Mexico’s Bimbo will look to issue $500m-$750m in 7-year or 10-year bonds this year, with a deal potentially happening in Q2, the baker’s corporate treasurer Roberto Cejudo Pascual, tells LatinFinance. “Proceeds of this potential transaction will be used for refinancing purposes and to re-pay the revolver facility we could use for the Sara Lee acquisition once this acquisition gets clearance from the authorities,” says the CFO. “We will use the credit lines from the fully committed $750m credit facility we took out in June 2010 and balance sheet to buy the Sara Lee assets in case the acquisition materializes, and then use the potential upcoming bond issue to re-pay this,” adds Cejudo. Cejudo adds that issuing bonds in dollars will help to broaden the investor base and will help match the future dollar-denominated cashflows. Banks have not yet been assigned as bookrunners for the bond issue. Cejudo adds that Bimbo is also considering taking out a syndicated loan for the same purpose, but this will probably not happen until late this year. Grupo Bimbo announced that it would acquire the US bakery assets of Sara Lee for $959m in November.