Grupo Lamosa, S.A.B. de C.V. : Grupo Lamosa refinances its total debt
09/14/2011 | 05:45pm EDT
Grupo Lamosa refinances its total debt
14 Sep 2011 - With the purpose of assuring its financial stability in the medium and long term, Grupo Lamosa subscribed today an amendment to its credit contracts related to the debt derived from the acquisition of Porcelanite. The main objectives of the agreement were to refinance the total debt to a longer term, to diminish the US Dollar-denominated debt exposure, and to reach significant savings in the interest expense payments. The operation was led by Scotia Capital and Inbursa, and it refinanced the syndicated credit for an equivalent amount of $450 million US Dollars, to a term of 6 years and with an average maturity of 4.4 years. The transaction included an applicable-margin grid between 150 and 350 base points, according with the leverage ratio of the Company. It is important to mention that regarding the subordinate debt of $225 million US Dollars, an amount of $70 million dollars was prepaid from the syndicated credit, which will allow the company annual savings of $3.1 million US Dollars for financial expenses. The outstanding balance of the subordinate debt of $155 million US Dollars was refinanced to a term of 7 years, with a single-payment at maturity in the year 2018. The agreement obtained the approval from most of the financial creditors, who mainly considered the financial improvement and operating capacity of the Company, the competitive positioning reached with the acquisition of Porcelanite and the favorable relationship that Grupo Lamosa maintains with them.