Panamco arranges $150M loan

Web source 10:30 AM EST Monday

Miami-based Panamerican (NYSE: PB) said it entered into a Bridge Credit Agreement with ING Bank N.V. for a loan of $150 million for a four-month term.

The proceeds of the loan will be used to pay the principal of the 8 1/8 percent Senior Notes due April 1 issued by Panamco in an aggregate principal amount of $150 million.

Once the acquisition of the company by Coca-Cola FEMSA is completed, the loan will be repaid.

ING Capital LLC acted as the sole arranger and administrative agent in connection with the loan.

Panamco is a large soft drink bottler in Latin America and one of the three largest bottlers of Coca-Cola products in the world, the company said. The company produces and distributes a majority of the Coca-Cola soft drink products in its franchise territories in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela and Brazil, along with bottled water, beer and other beverages in some of these territories.

On March 28, Panamco filed with the U.S. Securities and Exchange Commission a proxy statement regarding the proposed business combination transaction with Coca-Cola FEMSA. Panamco is seeking shareholder approval of the proposed transaction.

Shares of Panamco were down three cents to $21.67 in morning trading. The 52-week low was $7.45 on Oct. 23. The 52- week high was $21.70 on March 28.