The facility is split into a three-and-a-half-year, $600 million trade finance tranche and a five-year, $650 million working capital piece. The lines have a spread of LIBOR plus 55 basis points and LIBOR plus 75 bps, respectively. The $650 million tranche is also Mexico's first non-amortized five-year deal. "Its is a security line that gives the company cash when needed and can be used up to five years from now." The facility replaces two existing banking facilities with European, American and Japanese banks and a U.S. commercial paper facility.
"[The transaction] was very [well] accepted in the market," said Jaime Frontera, head of loan sales at Barclays. After a slow first quarter in the syndicated loan market, volume is increasing as Latin American blue chip companies recognize investor interest in high quality assets in the region, he noted. "The arrangers recognized the opportunity and communicated to the issuers it was a time for longer tenors and aggressive pricing," he added.
ABN Amro, Bank of Tokyo Mitsubishi, BBVA, BSCH,Caja Madrid, Citigroup, Deutsche Bank, Dresdner Bank, HSBC, J.P. Morgan, Scotia Capital, Standard Chartered and Société Générale were arrangers. UFJ was co-arranger. ANZ, Bank of New York, Landesbank Rhienland-Pfaltz and West LB came in as managers and Helaba and Lehman Brothers were participants.