Bottler Set for ECM Reintroduction

Mexico’s Cultiba is scheduled to price today an equity sale that should raise at least MXP3.94bn ($312m). Billed as a re-IPO, the Pepsi bottler formerly known as Embotelladoras Unidas 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 transaction was heard to be covered late Tuesday, though people following the sale report the issuer communicating substantial international and domestic interest, though no firm indications of demand. The total includes 23.75m secondary shares to be sold by a group of existing shareholders. 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.