Milbank Represents Credit Suisse in Grupo Senda Autotransporte, S.A. de C.V. in US$150 Million High Yield Offering
First High Yield Offering from Mexico Since Start of Credit Crisis
NEW YORK, October 5, 2007 – Reflecting renewed confidence in the high yield market in Mexico, Grupo Senda Autotransporte, S.A. de C.V. (“Senda”), the largest bus transportation company in Mexico, has issued US$150 million of secured high yield bonds in an international offering under Rule 144A/Regulation S. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partners Michael Fitzgerald (Global Securities) and Bruce Kayle (Tax), acted as US counsel to Credit Suisse, the underwriter of the offering.
Mr. Fitzgerald stated that “This transaction marks not only the inaugural international securities offering by Senda, the largest bus company in Mexico, but also marks the first high yield debt offering out of Mexico since the Latin American sub investment grade borrowers were shut out of the credit markets several months ago.”
The US$150 million offering of 10.50% senior notes due 2015 were rated B+ by both Fitch and Standard & Poor’s. Credit Suisse acted as sole bookrunner and manager of the offering. Proceeds from the offering will be used principally to refinance and lengthen the maturity of the Company’s existing debt.In addition to partners Michael Fitzgerald and Bruce Kayle, the Milbank team included associates Arturo Carrillo, Pedro Reyes and Leo Vellis.
Senda is a leading provider of bus transportation services in Mexico, principally serving the northeastern and central regions of Mexico. Senda offers scheduled bus passenger service to more than 125 destinations in 15 states in Mexico and 12 destinations in the United States, with a monthly average of 2,400 daily departures and a fleet of over 1,200 buses. Senda's principal routes cover substantially all of the major metropolitan areas in northeast and central Mexico and serve most of the small cities between such metropolitan areas. In addition, Senda operates a personnel transportation business that offers bus transportation services to businesses and educational institutions and operates a package delivery business using excess capacity in its buses and other dedicated vehicles.
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