Mexicana eyes $250 mln bond ahead of 2011 IPO

MEXICO CITY, May 21 (BestGrowthStock) – Mexican airline Mexicana is
seeking to launch a $250 million bond to clean up its balance
sheet as it continues preparations for an initial public
offering in 2011, its chief executive said on Friday.

The company, which bills itself as the biggest airline in
Mexico, has been working with Goldman Sachs on the bond issue
since last year, CEO Manuel Borja told a local radio station.

“The bond sale, which will improve the balance sheet, is
the first step in our plan to … convert Mexicana into a
publicly traded company … by the start of next year,” Borja
said.

Mexicana hopes to place the bond in June.

Mexico has recently seen its first IPOs after a two-year
drought as higher stock prices tempt companies into the market.
Supermarket chain Chedraui (CHDRAUIB.MX: ) and asset manager
Actinver (ACTINVRB.MX: ) recently held public offerings.

Mexico’s air industry was battered by the country’s deep
economic recession in 2009 and the H1N1 influenza outbreak that
hit tourism hard.

Mexicana hopes to return to profitability this year after
two years of losses and forecast at the start of 2010 it would
carry 12 million passengers, up from 11.1 million in 2009.

Local hotel company Posadas (POSASASA.MX: ) has a 30 percent
stake in Mexicana’s parent company Grupo Mexicana.

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(Reporting by Veronica Gomez; Writing by Robert Campbell,
editing by Matthew Lewis)

Mexicana eyes $250 mln bond ahead of 2011 IPO