FEMSA Reopens Note Offerings - Analyst Blog

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Mexican bottler Coca-Cola FEMSA S.A.B. de C.V. ( KOF ) is geared to improve its liquidity in order to improvise its acquisitions enhance its shareholder's returns. As a part of this strategy, Coca Cola Femsa announced that it will reopen the offering of 10-year and 30-year bonds initially placed on Nov 19, 2013.

The offering was reopened in order to increase the principal amount of the bonds. The proceeds are expected to be used for general corporate purposes and partial debt refinancing.

The bonds were placed in the international capital markets in three tranches - 5-year bonds worth $1.0 billion, 10-year bonds worth $750 million and 30-year bonds worth $400 million with a coupon rate of 2.375%, 3.875% and 5.250%, respectively. Moreover, the issuance received A2 rating from Moody's Corp. ( MCO ), A- from Standard & Poor's and A from Fitch Ratings.

Coca Cola Femsa has now decided to enhance the principal amount of the note offering by $2.5 billion. It has placed an additional $150 million for 10-year bonds bringing the total to $900 million. The 30-year bonds now have an additional $200 million totaling $600 million. 

The issuance of the notes is expected to improve the liquidity of Coca Cola Femsa and raise the average life of debt maturity profile from 4.1 years to 7.9 years.

Coca Cola Femsa carrying a Zacks Rank #5 (Strong Sell) is co-owned by the Coca Cola Company ( KO ) and Fomento Economico Mexicano S.A. ( FMX ), also known as FEMSA. It produces and distributes Coca-Cola, Fanta, Sprite, Del Valle and other trademark beverages of The Coca-Cola Company. It also distributes bottled water, juices, teas, isotonics, beer and other beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina and Philippines.



FOMENTO ECO-ADR (FMX): Free Stock Analysis Report

COCA COLA CO (KO): Free Stock Analysis Report

COCA-COLA FEMSA (KOF): Free Stock Analysis Report

MOODYS CORP (MCO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: FMX , KO , KOF , MCO

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