Mexico's Vitro ups two-part offer to $1 billion from $750 million, cuts talk for five-year notes to 8 7/8%, 10 year to 9 3/8%

By Reshmi Basu

New York, Jan. 24 - Mexican glass manufacturer Vitro SA de CV increased the size of its two-part offering of senior unsecured notes (B2/B) to $1 billion from $750 million on Wednesday, according to a market source.

Vitro also lowered price talk for its $250 million minimum tranche of five-year bullet notes to 8 7/8% from 9%.

Meanwhile the company lowered talk for its $250 million minimum tranche of 10-year notes to 9 3/8% from 9½%. The 10-year notes come with five years of call protection.

This is the second time the deal has been increased. On Tuesday, the issuer raised the offering to $750 million from $500 million.

Morgan Stanley, Credit Suisse and Lehman Brothers are managing the Rule 144A with registration rights and Regulation S transaction.

The deal is expected to price on Thursday.

The notes are guaranteed by Vitro Envases, the glass containers division, and ViMexico, the flat glass division, and by their wholly owned subsidiaries.

Proceeds will be used to help fund the tender for the company's $250 million 10¾% senior secured guaranteed notes due 2011.

Vitro has headquarters in Garza Garcia, Mexico.

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