TMM combines three trust certificate tranches into one issue, may use proceeds to prepay debt

By Jennifer Chiou

New York, July 30 - Grupo TMM, SAB announced that it consolidated the three tranches of its 20-year non recourse Mexican trust certificates program into one issuance totaling 10.5 billion pesos.

The company said it plans to use additional proceeds from the issue to prepay certain dollar-denominated debt and for general corporate purposes.

The new issue has a rate of Mexico's Interbank Equilibrium Interest Rate plus 245 basis points. It was rated AA (domestic) by HR Ratings de Mexico.

Shareholders gave the go-ahead to the new issue on April 30.

"With this new financing, the vast majority of TMM's debt will be peso-denominated, non recourse to the company and at a 20-year term," Jose F. Serrano, chairman and chief executive officer, said in a news release.

"Additionally, TMM's short-term debt will be less than 3% of the company's total debt."

TMM is a Mexico City multimodal transportation and logistics company.

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