B+ rated Azteca beat the expectations of several market participants when it increased a new seven year non-call four bond from $350m to $400m and managed to pricing in from high 8% to launch at 8.25% earlier in August.
The company’s Reg S only deal has performed well in the secondary market, drifting above par.
The company's CFO, Esteban Galíndez, said on Friday that some of the proceeds would be used to repay $335m of Azteca’s 2020s at a call price of 103.813.
“The redemption will further improve the company’s liquidity and debt maturity profile,” said one EM credit analyst, who estimates that $165m of the 2020s will remain outstanding.
In July, Azteca said it would call at par the $197.5m remaining under its 7.5% 2018s, using cash and peso-denominated debt. The company had started to redeem the bonds in March.
BCP Securities, Jefferies and Morgan Stanley were bookrunners on Azteca’s bond issue.