Mexico's Grupo Gigante sets formal guidance for $250 million 10-year bonds at 8¾%

By Reshmi Basu

New York, April 5 - Grupo Gigante SA de CV has set formal price guidance for a $250 million offering of 10-year senior unsecured bonds (/BB/BB) at 8¾%, according to a market source.

Price guidance has widened from initial guidance that was in the 8¼% area.

The issue will be non-callable for five years.

Additionally, there will be an investor put at 101 in the event of a change of control of the company. The issue will also include a high-yield covenant package.

Proceeds from the offering will be used to prepay existing debt.

The retailer is based in Mexico City.

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