Bimbo Bakeries USA issues $1 billion in bonds

The notes were issued for $580 million as an aggregate principal amount of senior unsecured 6.40% notes due 2034 and $420 million aggregate principal amount of senior unsecured 6.05% notes due 2029.

The proceeds of the offering will be used primarily for debt refinancing of Grupo Bimbo and BBU (including the repurchase of the Grupo Bimbo 2024 notes under the tender offer and the remaining for general corporate purposes.

The notes were guaranteed by Grupo Bimbo, S.A.B. de C.V., Bimbo, S.A. de C.V. and Barcel, S.A. de C.V.

The notes were offered in the US to qualified institutional buyers, as defined in Rule 144A under the US Securities Act of 1933, and to persons outside the United States in compliance with Regulation S under the Securities Act.

The banks involved in the issuance were Bank of America, BBVA, Citi and Morgan Stanley, as well as Rabobank, which acted as co-manager.

Grupo Bimbo was advised in Mexico by law firm Galicia Abogados, with a team led by partner Guillermo Pérez Santiago, with Sofía Montes de Oca Márquez.

Skadden, Arps, Slate, Meagher & Flom acted as counsel in New York to Grupo Bimbo, while Cleary Gottlieb Steen & Hamilton acted as counsel in New York to the banks. Law firm Ritch, Mueller y Nicolau acted as local counsel to the banks.