The Mexican subsidiary of Cox ABG Group completed a 2 billion dollar bond issuance in the United States, two weeks after acquiring Iberdrola's assets in Mexico.
The placement was carried out under the 144A/Reg S format and attracted demand of approximately 8 billion dollars. This allowed the original size of 1.5 billion to be increased and the issuance to be split into two tranches: five-year bonds with a 7.125 percent coupon and ten-year bonds with a 7.75 percent rate.
The proceeds refinance about two-thirds of the 2.65 billion dollar bridge loan used for the Iberdrola Mexico acquisition, which closed on April 24. The remainder is covered by a long-term loan with seven banks. The transaction replaces short-term debt with a stable capital structure.
Executive chairman Enrique Riquelme noted that the addition of the assets raises the company's proforma EBITDA to 750 million euros by the end of 2025. The platform includes 3.9 GW of generation capacity and a market share above 25 percent in Mexico's qualified supply segment.
