Crédito Real, S.A.B. de C.V. Announces Landmark Perpetual Bond Offering

November 21, 2017

New York - Paul Hastings LLP, a leading global law firm, represented Crédito Real, S.A.B. de C.V., one of the largest specialty finance companies in Mexico and with a growing U.S. presence, in an historic international hybrid securities offering. The offering involved the issuance of $230 million of 9.125% Subordinated Perpetual Notes pursuant to Rule 144A and Regulation S.
This offering is understood to be the first high yield hybrid securities offering by a non-bank financial institution in Latin America. The company intends to use the proceeds to repay certain indebtedness and since the perpetual bonds are treated as equity in the capital structure, the transaction will enhance the company’s credit profile. The underwriters involved were UBS, BofA Merrill Lynch and Credit Suisse.

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Crédito Real announced the first high yield hybrid securities offering by a non-bank financial institution in Latin America.

Paul Hastings attorneys have also represented Crédito Real in its IPO and prior bond offerings and liability management exercises.

Latin America practice partners Mike Fitzgerald and Joy Gallup led the Paul Hastings team, which also included partner Andy Short, counsels David Makso, Pedro Reyes and Wendell Faria, associates Stephanie Rohlfs, foreign associate Laura Dinora Martinez, and Hannah Kropp.

At Paul Hastings, our purpose is clear—to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.