Bimbo to Sell $800 Million of 10-Year Bonds as Soon as Today

Grupo Bimbo SAB (BIMBOA), the world’s largest bread maker, plans to sell $800 million of 10-year notes today in its first bond offering in more than 18 months.

Grupo Bimbo, based in Mexico City, plans to sell the bonds to yield 270 basis points, or 2.7 percentage points, more than similar-maturity U.S. Treasuries, down from a 287.5 basis-point spread initially planned, said the person, who asked not to be identified because final terms aren’t set.

Grupo Bimbo last issued debt in June 2010, when it sold $800 million of 4.875 percent of senior unsecured notes due in ten years, according to data compiled by Bloomberg. Yields on investment grade corporate bonds in the U.S. have fallen to 3.74 percent, compared to 4.41 percent the last time Grupo Bimbo issued a bond, according to Bank of America Merrill Lynch index data.

The sale will be managed by Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc. and Banco Santander SA, the person said. Proceeds of the offering may be used to refinance debt and for general corporate purposes.

The company has 750 million pesos ($56.2 million) of debt maturing on May 3, Bloomberg data show.

Grupo Bimbo is rated Baa2 by Moody’s Investors Service and an equivalent BBB by Standard & Poor’s.

To contact the reporters on this story: Sridhar Natarajan in New York at snatarajan15@bloomberg.net; Veronica Navarro Espinosa in New York at vespinosa@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net David Papadopoulos at Papadopoulos@bloomberg.net

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