Grupo Bimbo offers to buy any and all 3 7/8% notes due 2024

By Marisa Wong

Los Angeles, Oct. 30 – Grupo Bimbo, SAB de CV has begun a tender offer to purchase for cash any and all of its outstanding 3 7/8% senior notes due 2024 (Cusip: 40052VAC8, P4949BAJ3), according to a Monday press release.

Pricing will be calculated using the 3% U.S. Treasury due June 30, 2024 and a fixed spread of 0 basis points.

The company will also pay accrued interest.

The offer expires at 5 p.m. ET on Nov. 3, which is also the withdrawal deadline.

Tenders under guaranteed delivery procedures are due by 5 p.m. ET on Nov. 7.

The offer is not conditioned on any minimum amount of notes being tendered. However, the offer is contingent on some other conditions, including the issuance of new debt.

Wholly owned subsidiary Bimbo Bakeries USA, Inc. is conducting a concurrent international capital markets debt offering of notes, the proceeds of which will be used for general corporate purposes, including funding in whole or in part the tender offer.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are dealer managers for the tender offer.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 866 342-4882 for all others; bimbo@dfking.com) is the tender agent and information agent.

The baked goods company is based in Mexico City.

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