Cleary Gottlieb Steen & Hamilton LLP

10/10/2019 | News release | Distributed by Public on 10/10/2019 09:08

Crédito Real’s €350 Million Offering and Liability Management

Cleary Gottlieb represented initial purchasers and dealer managers Barclays, BNP Paribas, and Morgan Stanley in a high-yield global bond offering and related liability management transaction by Crédito Real S.A.B. de C.V. SOFOM E.N.R (Crédito Real).

The offering consisted of €350 million 5% senior notes due 2027 issued and sold by Crédito Real and was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the United States in reliance on Regulation S. The issuance priced on September 26, 2019, and closed on October 1, 2019.

The related liability management transaction consisted of an offer to purchase for cash up to $300 million aggregate principal amount of Crédito Real's outstanding 7.25% senior notes due 2023. The tender offer launched on September 12, 2019, and expired on October 9, 2019.

Crédito Real is a leading specialty finance company in Mexico with presence in the United States, Costa Rica, Honduras, Nicaragua, and Panama. The company focuses on consumer lending and has a diversified and scalable business platform focused primarily on payroll loans, durable goods loans, small business loans, group loans, used car loans, and personal loans. Crédito Real offers products to the low- and lower middle-income segments of the population, which historically have been underserved by other financial institutions.