Molinos Rio de la Plata S.A. (Molinos), based in Argentina, is expected to close on a $155 million export receivables deal this month.
Molinos, Argentina's largest branded food product company, has received a preliminary rating of BBB- from Fitch. The deal, led by Chase, will pierce the sovereign ceiling, despite the current political and economic hardships the country is presently enduring. According to Fitch, offshore cash flows and the structure of the deal boosted the transaction's ratings.
This deal will follow a similar structure to a $150 million deal that the company completed in 1996. An off-take contract from 1996, between Bunge Corp. and Molinos will carry out through this transaction. In 1999, Perez Companc Family Group (PCFG) acquired a controlling stake in Molinos from Bunge y Born International.
After the acquisition, a restructuring plan was implemented, which played a major role in the improvement of the operational, commercial and financial areas of the company. Last year, Molinos earned $846 million, and EBITDA (earnings before interest, taxes, depreciation and amortization) of $74 million and a net income of $4.4 million.