S&P: Embonor unaffected

Standard & Poor's said Coca Cola Embonor SA's (BB+/stable/--) announcement that it has obtained a syndicated credit facility for up to $180 million to pay, prepay and/or refinance existing debt would not have an immediate impact on the ratings of Embonor.

S&P said the new financing will result in significant interest savings from 2006 as the interest rate based on Libor plus a margin compares favorably to the 9.875% rate for the existing bonds.

The new line also somewhat improves Embonor's debt maturity profile, as it establishes a two-year grace period for principal payments and an amortization schedule for the three subsequent years, according to S&P.

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