Genomma Lab Secures $1.2 Billion in Unsecured Bonds

Genomma Lab Issues Unsecured Bonds Worth $1.2 Billion

Genomma Lab Internacional, S.A.B. de C.V. has taken a significant step in its financial strategy by successfully issuing unsecured Mexican corporate bonds, known as Cebures, totaling MXN $1.2 billion. This move not only demonstrates the confidence investors have in the company but also reflects its robust market position as a premier pharmaceutical and personal care product provider.

Details of the Issuance

The recent bond issuance was notably oversubscribed, attracting interest that exceeded the total amount offered by 1.25 times. The types of bonds included LAB 25 and LAB 25-2, both of which received favorable local currency debt ratings: 'AA+(mex)' from Fitch Ratings and 'HR AA+' from HR Ratings, indicating a strong financial standing.

Breakdown of the Bonds

The bonds were structured into two tranches, with LAB 25 receiving funding of $700 million and LAB 25-2 securing $500 million. Key details of these tranches include:

• Maturity Dates: LAB 25 matures on May 27, 2031, and LAB 25-2 matures on May 25, 2032.
• Interest Rates: LAB 25 has an interest rate of TIIE 28 days + 70 basis points, while LAB 25-2 carries TIIE 28 days + 77 basis points.
• Principal Payment: Both tranches are set for bullet payments.
• Interest Payments: Interest on the bonds will be paid every 28 days.

Actinver Casa de Bolsa, S.A. de C.V. has served as the bookrunner for this successful transaction, ensuring effective management of the bond issue process.

Use of Proceeds

The funds raised from this bond placement will primarily be allocated to refinance existing liabilities, particularly the full early amortization of the LAB 23 Cebur. This strategic move is expected to significantly improve Genomma Lab’s debt maturity profile, enhancing its overall financial agility.

Full Amortization of LAB 23

The Company plans to conduct the full early amortization of the LAB 23 Cebur as per the agreements stated in the offering supplement. The redemption price will reflect either the face value of the bonds or the average market price over the preceding thirty days, accounting for accrued interests as applicable.

About Genomma Lab Internacional

Genomma Lab Internacional, S.A.B. de C.V. stands out as one of the fastest-growing companies in the pharmaceutical and personal care sectors across Latin America. The firm is committed to developing and marketing a wide range of premium branded products, many of which are market leaders in their respective categories. It efficiently combines a rigorous product development process, effective consumer marketing strategies, a broad distribution network, and a flexible supply chain to maintain its competitive edge.

The company remains steadfast in its mission to provide top-quality products while also navigating the complexities of a dynamic market environment. Genomma Lab continues to innovate and expand its reach, making it a vital player in the industry.

Frequently Asked Questions

What was the total amount raised by Genomma Lab from the bond issuance?

Genomma Lab raised a total of $1.2 billion pesos through the issuance of unsecured bonds.

What are the maturity dates for the LAB 25 and LAB 25-2 bonds?

The LAB 25 bond matures on May 27, 2031, and the LAB 25-2 bond matures on May 25, 2032.

Who acted as the bookrunner for this bond issuance?

Actinver Casa de Bolsa, S.A. de C.V. served as the bookrunner for the bond issuance.

What will the proceeds from the bond issuance be used for?

The proceeds will be used for prepaying liabilities, including the full early amortization of the LAB 23 bond.

What ratings did the bonds receive from rating agencies?

The bonds received an 'AA+(mex)' rating from Fitch Ratings and 'HR AA+' from HR Ratings.

About The Author

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