Aeromexico prices USD 117.4m of US Ex-Im Bank-guaranteed notes

Mexico City-based airline operator Grupo Aeromexico SAB de CV (BMV: AEROMEX) said it has priced an offering of USD 117.4m of 2.537% secured notes due July 13 2025 guaranteed by the Export-Import Bank of the United States payable quarterly.

The company said it plans to use the proceeds of the offering to refinance two Boeing (NYSE: BA) 737-800 aircraft, delivery of which was taken in June and July of 2013, and to finance one Boeing 737-800 aircraft, delivery of which will be taken in August 2013.

Aeromexico said the offering of the notes is the first time that a private-sector company in Mexico will fund its transactions through Ex-Im Bank-guaranteed bonds issued via the capital markets.

The airline is the issuer of the secured notes through the SPV Mexican Aircraft Finance IV, LLC JP Morgan (NYSE: JPM) and Citigroup (NYSE: C) are acting as joint book-running managers and structuring agents for the offering of the notes.

Grupo Aeromexico is a holding company with subsidiaries that are engaged in commercial aviation in Mexico as well as the promotion of passenger loyalty programmes. The company has a fleet of Boeing 777, 767, 737 and the latest models of Embraer (NYSE: ERJ) 145, 170 and 190. Grupo Aeromexico began an important expansion plan 2011 which includes the incorporation of 20 new aircraft and properties over the next 24 months.