By William Gullotti and Cristal Cody
Buffalo, N.Y., Oct. 31 – Grupo Bimbo SAB de CV’s wholly owned subsidiary, Bimbo Bakeries USA Inc., sold $1 billion of notes in tranches due 2029 and 2034 (Baa1/BBB+/BBB+) on Monday, according to market sources.
The first tranche consists of $450 million 6.05% notes due Jan. 15, 2029, priced with a 125 basis point spread over Treasuries. Pricing came in under initial talk in the Treasuries plus 145 bps area.
The tranche maturing Jan. 15, 2034 totals $550 million, carries a 6.4% coupon and priced at 155 bps over Treasuries. The 2034 notes also priced tighter than initial talk, which was in the Treasuries plus 175 bps area.
As previously reported, the parent company and its operating subsidiaries Bimbo, SA de CV and Barcel, SA de CV will guarantee both tranches.
BBVA Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are the bookrunners.
Proceeds will be used for general corporate purposes, including funding in whole or in part Grupo Bimbo’s concurrent tender offer for its 3 7/8% notes due 2024.
The issuer is the U.S. corporate arm of the Mexican multinational bakery company and based in Horsham Township, Pa.
| Issuer: | Bimbo Bakeries USA Inc.
|
| Guarantors: | Grupo Bimbo SAB de CV, Bimbo SA de CV and Barcel SA de CV
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BBVA Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
|
| Trade date: | Oct. 30
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
|
|
| 2029 notes
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| Amount: | $450 million
|
| Maturity: | Jan. 15, 2029
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| Coupon: | 6.05%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | Treasuries plus 145 bps area
|
|
|
| 2034 notes
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| Amount: | $550 million
|
| Maturity: | Jan. 15, 2034
|
| Coupon: | 6.4%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 175 bps area
|
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