Mexico's Vitro issues $21.5 million in trade receivables securitization

By Reshmi Basu

New York, Aug. 25 - Vitro SA de CV said its subsidiary Vitro Plan, SA de CV issued $21.5 million in a trade receivables securitization.

The private issuance was placed through a trust. The notes will bear an interest rate of 6½%.

Parent company Vitro said the interest and principal are payable from receivables to be originated by four subsidiaries of Vitro Plan. Those subsidiaries are: Distribuidora Nacional de Vidrio, SA de CV, Vitro Flotado Cubiertas, SA de CV, Vitro Automotriz, SA de CV and Vitro Vidrio y Cristal, SA de CV.

"This mechanism has proven to be cost efficient financing for working capital, as well as being innovative in the Mexican market," Vitro said in a news release.

Proceeds will be used for working capital and for debt refinancing.

The transaction will not increase the company's on-balance sheet debt, said Vitro.

Glassmaker Vitro SA de CV is based in San Pedro Garza García, Nuevo León.

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