Expectations for an attractive placement of a usd 45 million bond issue

Cronista

Publish September 19 2023, Cronista

Citrus San Miguel, the world's leading exporter of lemons, will take advantage of a market window to bring forward payments on two more series of Notes.

To take advantage of a market window, consolidate the investment and restructuring plan that the company has been carrying out since 2022 and clear the debt horizon, this week the citrícola San Miguel will reopen its Series 9 ON expiring in 2025, for up to u$s 45 million.

With these funds, it will extend the expiration dates of the ON series 7 and 5 maturing in January and February 2024.

The underwriters will be Santander, Balanz, Allaria, Latin Securities, Banco Provincia, TPCG, Mills Capital Markets, Stonex, Facimex, Puente, Invertir en Bolsa, Cocos Capital.

The bidding will take place next Thursday 28th, between 10.00 and 16.00 according to the company.

All these steps are to strengthen the capital structure and continue to finance our turnaround plan, explains Pablo Plá. CEO of San Miguel.

According to the firm, this issue generates a positive return of around 5%, compared to neutral or negative returns in other products.

Conditions

In addition, Series 9 allows for subscription with the ON Series 5 and 7, a conversion ratio that generates an additional premium for the investor. They are also sustainability-linked bonds, which allow investors to qualify their holdings within the framework of sustainable investments.

In a recent interview with El Cronista, the company's CEO, Pablo Plá, explained that both the loans raised abroad, the funds raised from multilateral organisations and the subordinated loans taken by controlling shareholders converge in one objective.

"All these steps are to strengthen the capital structure and to continue to finance our restructuring plan," explained Plá.

SAMI, as its stock exchange ticker, is concluding a strategic reconfiguration process, which began last year and marked a turning point in its 60-year history.

This transformation includes the exit of the fresh fruit business and the development of industrial products based on natural ingredients in South Africa, Argentina and Uruguay, based on long-term contracts. The production of lemon essential oil is at the heart of the strategy.