The company will upsize its $500 million 5.750% senior notes due 2027 (by an additional $200 million add-on). The net debt proceeds of the issuance will be used to refinance debt, support its cash balance, productive investments and for general corporate purposes, including potential future acquisitions. Legal advisers to The Central America Bottling Corporation were Hogan Lovells as lead international counsel having other local Latam Firms involved such as Consortium Legal, Rodrigo, Elías & Medrano Abogados, Benjamín Valdez & Asociados and Fábrega, Molino & Mulino and LEXIM Abogados, the later been also outside counsel to The Tesalia Springs Company SA.
An Interview With Jorge Cevallos Founding Partner at LEXIM Abogados
How do you ensure that the decisions made throughout the refinance are favourable towards your client?
Simply by being able to get financing at lower interest rates that other competitors may not be able to get for certain markets in Latin America and especially by securing working capital during the pandemic and these unprecedented times.
When financing debt, what issues can arise?
There may be a possible decline in sales for the industry in the region as well as in many others, hence the reason for tightening the cash flow as all financial obligations have to be honoured.
How do you overcome them?
Focus on innovation for marketing, supply chain and distribution strategies, as well as possibly introducing new products or categories of products in certain markets.
