Cultiba Sets Re-IPO Date

Mexico’s Cultiba plans to price an equity follow-on January 30, according to sources familiar with the transaction, targeting at least MXP3.94bn ($312m). Though the Pepsi bottler formerly known as Embotelladoras Unidas has existing shares, the upcoming deal is being treated as an IPO. It is offering 112.7m shares, including a 14.7m share greenshoe, at MXP35.00-MXP40.00 each, according to regulatory documents, indicating a MXP4.20bn transaction at the midpoint. The total includes 23.75m secondary shares to be sold by a group of holders. The shares are to be sold in international and local tranches, and represent 15.6% of the company, assuming the greenshoe is exercised. The issuer is raising funds to repay bank loans 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 the transaction.