Vitro announces successful closing of trade receivables

Vitro, S.A. de C.V. announced that its subsidiary Vitro Envases Norteamérica, S.A. de C.V.(“VENA”), Vitro’s glass containers division, closed today the issuance of Ps. $550million in “Certificados Bursátiles Preferentes”, placed through a trust, such “Certificados Bursátiles Preferentes” will trade on the “Bolsa Mexicana de Valores” at an interest rate of TIIE (“Tasa de Interés Interbancaria de Equilibrio”) plus 120 basis points. The trust also issued “Certificados Subordinados” for US$19 million in the United States of America. The trust was specifically formed for this securitization transaction. Interest and principal on the debt from both “Certificados” are payable from receivables to be originated by three subsidiaries of VENA. The VENA subsidiaries that will be assigning receivables to the trust are: Compañía Vidriera, S.A. de C.V. (“COVISA”), which conducts all of VENA’s glass container operations in Mexico, Industria del Álcali, S.A. de C.V. (“Álcali”) which is engaged in the manufacturing and distribution of soda ash, sodium bicarbonate, calcium chloride and salt, and Comercializadora Álcali, S. de R.L. de C.V. (“Comercializadora”) which markets Álcali products. The demand for the preferred financial instruments resulted in a 2.9 times oversubscription, demonstrating the excellent access that VITRO has in the capital markets in Mexico and abroad. This transaction allows VENA to reduce its cost of funding, it increases liquidity and it gives access to a five year committed line of credit. VENA will use the proceeds to finance working capital needs and the transaction will not increase the company’s debt. “This is the first transaction of its type in the Mexican market and we are very pleased with the positive reaction of the market. The result has been a very attractive financial instrument for the market, with the highest ratings and with good interest rates. I believe that this transaction strengthens the fine perception that the market has of VITRO and of our efforts to find innovative and attractive instruments for our financing operations and for the market”, commented Fabrice Serfati, Finance Manager Vitro. The transaction received a rating of mxAAA from Standard & Poor´s and of Aaamx from Moody´s.