Coca-Cola FEMSA S.A.B. de C.V.
) 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,
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
), 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
Fomento Economico Mexicano S.A.
), 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.
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