Kuo Targets 10-Year

Mexican holdco Grupo Kuo is aiming for a new $250m 2022 bond, according to Fitch which assigns a BB rating to the deal. Kuo is to head out on the road Monday through Wednesday of next week, as it looks to fund a tender offer for all of its $250m 9.75% 2017 bonds. Kuo is offering holders $1,053.75 cash per $1,000 principal before the November 30 early deadline, and $1,023.75 per $1,000 after, through the December 14 final deadline. The offer is contingent on the bond deal. Credit Suisse is managing the tender, and is joined by Citi, Bank of America Merrill Lynch on the new deal. Revenue growth for Kuo has been supported mainly by acquisitions and organic growth, Fitch says, a 15% increase during the 12 months to September 30, while Ebitda increased 22%. During the past year, Kuo made acquisitions or entered into new joint ventures in its automotive and consumer divisions.