Cultiba Heard Reaching out to Buyside

Mexico’s Cultiba aims to start investor pre-education discussions this week for an equity follow-on, according to sources familiar with the process, though the timing for the launch and formal road show remains to be set. The transaction, essentially a re-IPO given the illiquidity of the Mexican Pepsi bottler’s shares, is expected to raise $300m-$500m. The company formerly known as Grupo Embotelladoras Unidas plans to set a price range and is offering primary and secondary shares in Mexican and global tranches, according to regulatory documents. The issuer would need to raise at least $250m-equivalent to repay the bank loans it plans to take out with the proceeds, and also targets additional capital for investments. The bottler has a $125m loan due 2022 with Rabobank, costing it Libor+225bp, and an MXP1.61bn ($126m) 2022 loan with Banorte at TIIE+160bp. Bank of America Merrill Lynch, Banorte-Ixe, BBVA Bancomer, Credit Suisse, Inbursa and JPMorgan are managing.