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RM | Capital structures $180 million Private Placement for Vitro
On December 30, 2020, RM Capital closed a $180 million senior unsecured private debt financing for Vitro, one of the leading glass manufacturers in North America. The deal was split in 2 tranches: A) $130M 6yr bullet with a 2.80% coupon and B) $50M 10yr bullet with a 3.43% coupon; this resulted in a weighted average life of 7.11 years and a weighted average rate of 2.97%, achieving one of the lowest costs for a Mexican issuer ever.
RM | Capital acted as exclusive advisor to Vitro, leading the investor selection, negotiation of the terms including the pricing, tenor, and covenant discussions, as well as structuring and coordinating the transaction. Negotiations on this highly successful transaction started in January 2020 and the transaction timeline was affected by the dislocation created by the COVID-19 pandemic. RM | Capital was able to maintain all along the investor interest, ultimately closing the transaction just before year end.
Vitro used the proceeds of the transaction to partially refinance its outstanding Syndicated Bank Facility, significantly improving the terms of its debt (tenor, cost and covenant structure).