Shearman & Sterling Advises on The Central America Bottling Corporation’s Notes Offerings
Shearman & Sterling represented Citigroup Global Markets Inc. and J.P. Morgan Securities LLC as initial purchasers in a Rule 144A and Regulation S offering by The Central America Bottling Corporation (the “Company”) of US$500 million aggregate principal amount of its 5.750% senior guaranteed notes due 2027 (the “2027 Notes”). Concurrently, Citigroup and J.P. Morgan acted as dealer managers in the Company's five-day any and all cash tender offer of US$300 million aggregate principal amount of its 6.750% senior guaranteed notes due 2022 (the “2022 Notes”). The Company used part of the proceeds from the 2027 Notes offering to purchase US$245.9 million aggregate principal amount of 2022 Notes pursuant to the tender offer and to redeem the remaining outstanding untendered 2022 Notes, resulting in the satisfaction and discharge of the related indenture simultaneously with the settlement of the tender offer and closing of the 2027 Notes offering on January 31, 2017.
The Company produces, distributes and markets beverage products that include brands owned by PepsiCo and AmBev, as well as its proprietary brands such as LivSmart. Its products include carbonated soft drinks, bottled drinking water, sports drinks, energy drinks, juices, nectars, tea and beer. Its operating region is principally comprised of Guatemala, Southern Honduras, Nicaragua, El Salvador, Puerto Rico, Jamaica, Ecuador, Peru and Argentina.
The Shearman & Sterling team included partner Antonia Stolper (New York-Capital Markets); counsel Alejandro Gordano (London-Capital Markets); and associates Antonio Herrera Cuevas (San Francisco-Capital Markets), Erika Khalek (New York-Corporate); and international associate Ana Maria Alpizar (New York-Capital Markets). Other Shearman & Sterling lawyers involved in the transaction were counsel Jeffrey Tate (Washington, DC-Tax) and associate Michael Daly (Washington, DC-Tax).