Gruma tenders for 7 5/8% notes

New York, Nov. 17 - Gruma, SA de CV said it has begun a tender offer for all $250 million of its 7 5/8% bonds due 2007. The Monterrey, Mexico maker of cornflour, tortillas and wheat flour is also soliciting consents to eliminate certain restrictive covenants in the note indenture.

The tender price will be set as the present value of the remaining principal and interest on the bonds, discounted using a yield of 35 basis points over the 3% U.S. Treasury note due Nov. 15, 2007 on the pricing date of 2 p.m. ET on Nov. 30. The total includes a $20 per $1,000 principal amount consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Nov. 30.

The offer expires on Dec. 14.

The tender is subject to conditions include the receipt of necessary financing.

Merrill Lynch & Co. (212 449-4914 or 888 654-8637) is the dealer manager and solicitation agent and Bondholder Communications Group (888 385-2663 or +44 20 7236-0788) is the information agent.

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