Mexico's Grupo Gigante sets guidance for $250 million 10-year bonds at 8¼% area

By Reshmi Basu

New York, March 30 - Grupo Gigante SA de CV set initial price guidance for a $250 million offering of 10-year senior unsecured bonds (/BB/BB) at the 8¼% area or 300 basis points more than the five-year swap rate, according to a market source.

The issue will be non-callable for five years.

Additionally, there will be an investor put at 101, in the event of a change in control of the company. The issue will also include a high-yield covenant package.

Proceeds from the offering will be used to prepay existing debt.

The retailer is based in Mexico City.

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