Grupo KUO, S.A.B. De C.V. Announces Pricing of USD 450 Million Senior Notes Due 2027
June 29, 2017 at 05:29 pm EDT
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Grupo KUO, S.A.B. de C.V. announced the pricing of USD 450 million aggregate principal amount of its senior notes due 2027. The Notes will be issued at a price of 100% of the principal amount, plus accrued interest, if any, from July 7, 2017, and will bear interest at an annual rate of 5.75%, payable semi-annually on January 7 and July 7 of each year starting on January 7, 2018. The Notes will mature on July 7, 2027. The offering is expected to close on July 7, 2017. Grupo KUO intends to use the net proceeds from the sale of the Notes to fund the tender offer and consent solicitation for its outstanding 6.25% senior notes due 2022 (including the payment of any accrued and unpaid interest), to redeem any 2022 notes that remain outstanding after consummation of the tender offer and consent solicitation, to repay certain indebtedness and to the extent any proceeds remain, for general corporate purposes. The Notes will be issued in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended, and to non-U.S. persons in offshore transactions pursuant to Regulation S under the Securities Act.
Grupo KUO SAB de CV is a Mexico-based industrial and commercial global holding company. The Company holds shares of entities located in Mexico, the United States, Spain, Belgium and China that are engaged in manufacture and sale of consumer business products, including processed food, beverages and pork meat, chemical products and auto parts. Its business includes six strategic business units (SBUs), including Pork Meat, JV Herdez Del Fuerte, JV Synthetic Rubber, Plastics, Transmissions and Aftermarket. The Pork Meat SBU is a producer of pork in Mexico and exporter to Japan and South Korea. The Aftermarket SBU offers engine, power train and brake systems components, and is an exporter of gaskets, seals and joints. Its principal subsidiaries include Keken, S.A. de C.V. and subsidiaries; KUO Consumo, S.A.P.I. de C.V.; Industrias Negromex, S.A. de C.V; Resirene, S.A. de C.V.; Transmisiones y Equipos Mecanicos, S.A. de C.V., and Dacomsa, S.A. de C.V.
GRUPO KUO, S.A.B. DE C.V. 
