Cleary counsels Bimbo on $1.25bn bond offering
Cleary Gottlieb has counselled BofA Securities, Citigroup, J.P. Morgan, Mizuho, MUFG, and Rabo Securities, as initial purchasers, in a $1.25 billion bond offering comprised of the reopening of $450 million 6.05% senior notes due 2029 and the new issuance of $800 million 5.375% senior notes due 2036, issued by Bimbo Bakeries USA Inc. (Bimbo Bakeries USA), and guaranteed by its parent Grupo Bimbo . (Grupo Bimbo), Bimbo, and Barcel.
The offering was conducted as a private placement in the United States under Rule 144A and an offshore offering in reliance on Regulation S. The transaction priced on January 4 and closed on January 9, 2024.
Other firms participating included Ritch Mueller, as Mexican counsel to the initial purchasers; Skadden Arps Slate Meagher & Flom, as US counsel to Bimbo; and Galicia Abogados as Mexican counsel to Bimbo.
This is Bimbo Bakeries USA’s first reopening of its 6.05% senior notes due 2029, resulting in a total aggregate principal amount outstanding of $900 million in this series.
Bimbo Bakeries USA is a wholly owned subsidiary of Grupo Bimbo, a global consumer foods company, a leader in the bakery industry and a key player in the snack food industry. Grupo Bimbo has a portfolio of more than 9,000 products spanning different categories and marketed under its well-known brands. Founded in 1945, Grupo Bimbo has expanded significantly through a combination of steady organic growth and strategic acquisitions.
Ritch Mueller’s team was led by partner Jean Paul Farah Chajín, with support from lawyers Diego Rodríguez Rodríguez, Ernesto Talamás Velázquez and Gerardo Barbará González.
Cleary’s team included partner Jorge Juantorena (pictured) and associates Laura Daugherty and Carla Martini, international lawyer Lucia De Miceu, and law clerk Joseph Downey. Partner Matt Brigham and associates Adriana De Bartolo and Joseph Roy advised on U.S. tax matters. All lawyers are based in New York except Joseph Roy, who is based in San Francisco.
