Gruma receives consents to amend 7 5/8% notes, sets pricing

New York, Nov. 30 - Gruma, SA de CV said it received the necessary consents to amend the indenture of its $250 million of 7 5/8% bonds due 2007 and also set pricing in the tender offer.

The Monterrey, Mexico maker of cornflour, tortillas and wheat flour was soliciting consents to eliminate certain restrictive covenants in the note indenture.

Following receipt of consents, it has executed a supplemental indenture which will become effective when notes tendered by the consent deadline are purchased.

By the consent date, Gruma had received tenders of 80% of the notes.

Holders who tendered by that deadline will receive $1,108.29 per $1,000 principal amount, including a $20 consent payment.

Holders tendering after the consent deadline will receive $1,088.29 per $1,000 principal amount.

Gruma will also pay accrued interest up to but excluding the payment date.

Gruma said on Nov. 17 it had begun a tender offer for all $250 million of its 7 5/8% bonds due 2007.

The tender price was set as the present value of the remaining principal and interest on the bonds, discounted using a yield of 35 basis points over the 3% U.S. Treasury note due Nov. 15, 2007 on the pricing date of 2 p.m. ET on Nov. 30. The total includes a $20 per $1,000 principal amount consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Nov. 30.

The offer expires on Dec. 14.

The tender is subject to conditions include the receipt of necessary financing.

Merrill Lynch & Co. (212 449-4914 or 888 654-8637) is the dealer manager and solicitation agent and Bondholder Communications Group (888 385-2663 or +44 20 7236-0788) is the information agent.

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