Mexican appliance company Mabe, a joint-venture with General Electric Co., announced that it closed a U.S. $400-million bank loan that it will use to refinance existing debt.
The 5-year loan will be priced using a leverage grid, which decreases interest as the borrower lowers debt, and has an initial Libor margin of 100 basis points, Mabe said.
The appliance company also said ABN Amro, Citigroup Global Markets and Standard Chartered were joint lead arrangers for the loan.
Mabe produces of gas and electric ranges, refrigerators, and washing machines for the Latin American market. It reportedly has a 48-percent market share in white good appliances in Mexico and also exports to the U.S. through GE.
The company said it expects to report sales of $1.88 billion this year and more than $260 million in earnings before interest and taxes. (Dow Jones)
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