Alsea, S.A.B. de C.V., the leading operator of quick service restaurants, coffee shops, casual and family dining establishments in Latin America and Europe, and owner of VIPS, has announced the pricing of €300 million senior notes due 2027, at a 5.500%% coupon per annum issued by its subsidiary Food Service Project, S.A. and guaranteed by Alsea.
The Euro Notes have a 2-year call date (January 21, 2024), and the issuance is being performed pursuant to Rule 144A and Regulation S of the U.S. Securities Act.
Alsea intends to allocate the net proceeds of the transaction to consummate a debt refinancing transaction that consists of the repayment of certain indebtedness of the issuer and its subsidiaries, and to pay fees and expenses incurred in connection with the offering of the notes and the debt refinancing transaction.
This deal will allow Alsea to improve its maturity profile, rebalance its debt portfolio, as well as broaden its current investor base in Europe.
The Euro notes have been rated “B1” and “BB-” on global scale by Moody’s Investor Services, Inc. and Fitch Ratings, respectively, and are secured by Alsea and various subsidiaries of Alsea.
Furthermore, the pricing attests to the confidence that investors have in Alsea as it was oversubscribed 2.7 times.
In this placement BofA Securities, ING (B&D), Santander and Societe Generale acted as Global Coordinators & Joint Active Bookrunners, and Caixa, Rabobank, Sabadell, Scotiabank acted as passive joint-bookrunners.
The Mexican restaurant group Alsea, is a leader in Spain by number of restaurants through its brands Domino’s Pizza, Foster’s Hollywood, Starbucks and Vips.
DLA Piper advised Alsea in Mexico and New York. Garrigues advised Alsea in Spain. Skadden advised the banks in New York. Uria Menéndez advised the banks in Spain.
Garrigues´team comprised partners Gonzalo García-Fuertes, Xabier Urtiaga and Eduardo Abad, along with principal associate Fernando Santos and senior associate Clemente Mateo.
Uría Menéndez´s team was formed by partners María Vidal-Pardo and Javier Tortuero, counsel Violeta Pina, associate Miloslava Ilcheva and junior associate Isabella Cortés.