By Andrea Heisinger
New York, Feb. 2 - Mexico-based Coca-Cola Femsa SAB de CV sold an upsized $500 million of 4.625% 10-year notes on Tuesday to yield Treasuries plus 105 basis points, an informed source said.
The size was increased from $400 million, and the deal was heavily oversubscribed with $2.5 billion on the books. Initial guidance was 115 bps to 125 bps, was later tightened to 110 bps and then launched at 105 bps, where it was priced.
The Rule 144A notes (A3/A-/A) sold at 99.491 to yield 4.689%. They are non-callable.
The sale was popular with U.S. high-grade accounts that realized they could own Coca-Cola bonds with a 30 bps concession to the domestic Coca-Cola Co., which partly owns the issuer.
Bank of America Merrill Lynch and Goldman Sachs & Co. were the bookrunners.
The bottler of Coca-Cola products for Latin American countries is based in Monterrey, Mexico.
| Issuer: | Coca-Cola Femsa SAB de CV
|
| Issue: | Notes
|
| Amount: | $500 million, upsized from $400 million
|
| Maturity: | Feb. 15, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co.
|
| Coupon: | 4.625%
|
| Price: | 99.491
|
| Yield: | 4.689%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Non-callable
|
| Distribution: | Rule 144A
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A
|
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