Mexico's ICA sells Ps. 800 million of exchange-traded notes

By Reshmi Basu

New York, July 1 - Construction company Empresas ICA, SA de CV, through its subsidiary Tuneles Concesionados de Acapulco, sold Ps. 800 million of exchange-traded notes, according to a Securities and Exchange Commission filing.

Revenues from tolls and toll collection rights to the Acapulco Tunnel will be transferred to a trust, which will in turn issue the notes, which are being brought to market as certificados bursatiles.

The notes will come due in 17 years and pay interest at TIIE plus 295 basis points. At the time of the issue, the rate was 13.16%.

The TIIE interest rate will be capped at 13% for the first four years.

The notes will amortize beginning in 2008. The issuer will also have the option to prepay after nine years.

Proceeds will be used to prepay Ps. 206 million of series A ordinary participation certificates, which were issued by TUCA in 2001, and to repay Ps. 66 million of TUCA's debt to Banco Nacional Obras y Servicios Publicos.

The remaining Ps. 460 million will be used for general corporate purposes.

Empresas ICA is based in Mexico City.

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