Grupo Aeroméxico raised USD762.5 million through a bond issue on the Singapore Stock Exchange last month to finance, in part, its public acquisition offer, according to a memorandum issued by the airline group.
The issue represented 8.5% of its Senior Notes and will mature on March 17, 2027. Interest will accrue at a fixed rate of 8.5% per year, payable quarterly on March 17, June 17, September 17, and December 17 of each year.
Grupo Aeromexico said it planned to use the net proceeds to finance the purchase of stock participation, including fees and expenses related to that.
The money raised would also go towards repaying the first tranche of its Debtor in Possession (DIP) financing; for working capital and general corporate purposes; towards paying interest, premiums, fees, and expenses payable to the holders of the Notes, the trustee, and the collateral agent; and for cash distributions to unsecured creditors.
The notes were fully guaranteed by Grupo Aeromexico affiliates Aeroméxico, Aerolitoral, and Aerovías Empresa de Cargo.
The indenture contained certain covenants that, among other things, limited the ability of the issuer and the guarantors to:
- incur additional debt;
- make certain payments, including dividends or other distributions concerning capital stock, or prepayments of subordinated debt;
- enter into sale and leaseback transactions;
- make certain investments or sell assets;
- create certain liens;
- provide guarantees for certain debt;
- enter into restrictions on the payment of dividends and other amounts by subsidiaries;
- engage in certain transactions with affiliates; and
- consolidate, merge, or transfer all or substantially all their assets.
The Bank of New York Mellon was named as the trustee, transfer agent, registrar, and paying agent; and UMB Bank National Association as collateral agent.
According to Grupo Aeromexico's latest financial statements attached to the memorandum, it recorded a loss of USD18.7 million in 2021 compared to USD42.5 million in 2020. Total revenue in 2021 was USD45.4 million compared to USD28.5 million in 2020. Its assets in 2021 comprised USD 86.8million versus USD79.7 million in 2020. Liabilities in 2021 stood at USD141.3 million over USD112.6 million in 2020.
Last month, Grupo Aeroméxico announced it would delist from the Mexican Stock Exchange (Bolsa Mexicana de Valores) following a decision to this effect by an extraordinary shareholders meeting on June 27, 2022. The delisting in Mexico forms part of its restructuring agreement achieved after more than a year of negotiations with its creditors. This enabled the airline group to exit US Chapter 11 bankruptcy protection on March 17, 2022.
Like most airlines worldwide, Mexico's biggest airline was hit hard by the COVID-19 pandemic. It entered voluntary US Chapter 11 on June 30, 2020, to implement financial restructuring.
