Arca Continental (AC), the second largest bottler of Coca-Cola brand products in Latin America, returns to the stock market after a year to make a debt placement with the aim of raising up to 4,350 million pesos, which it will use to refinance your liabilities.
The issuer expects to place the debt securities next June 8 on the Mexican Stock Exchange (BMV) in two tranches. Through one of the issues, it will offer a fixed interest rate and a payment term of up to seven years. While the second will place it at a variable rate and a term of up to four years, he described in a presentation to investors.
On May 11, 2021, AC went to the BMV to place bonds under the “green” label, with which it raised 4,650 million pesos also in two parts. One at seven years and a fixed rate of 6.75%, the other with a maturity in four years and at a variable rate TIIE plus 7 basis points.
AC received the “Aaa” ratings on its national scale for this issue from the agencies Fitch Rating and Moody’s, which is the highest investment grade scale.
Fitch assigned the highest grade because it considers the bottler to have a strong capacity to generate free cash flow (FFL), after capital investments and dividends. He projects that this situation will remain strong this year and into 2023.
He highlighted that during 2021, the company’s FFL was 8,100 million pesos, while capital investments were 7,400 million, in addition, it delivered dividends of 9,700 million pesos.
Arca Continental generates approximately 42% of its consolidated revenues from the beverage segment in Mexico, 35% in the United States, 8% in Peru, 6% in Ecuador and 5% in Argentina.
Arca Continental’s debt profile is manageable with debt amortizations of 7.5 billion in 2022, 5.9 billion in 2023, 5.3 billion in 2024 and 4.2 billion in 2025.”
The company has financial flexibility to face the sufficient maturities of its short and long-term debt, given its liquidity position, positive generation of FFL and good access to credit facilities and capital markets”, Fitch stated.