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Aeromexico Announces Pricing of Notes Guaranteed by the US Ex-Im Bank at 2.537%

07/25/2013 | PR Newswire

MEXICO CITY, July 23, 2013 /PRNewswire/ -- Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), the largest global airline in Mexico, today announced the pricing of an offering of USD $117.4 million of 2.537% secured notes due July 13, 2025, (the "Notes") guaranteed by the Export-Import Bank of the United States ("Ex-Im Bank") payable quarterly.

The Company intends to use the proceeds of the offering to refinance two Boeing 737-800 aircraft, delivery of which was taken in June and July of 2013, and to finance one Boeing 737-800 aircraft, delivery of which will be taken in August 2013. The offering of the Notes is the first time that a private-sector company in Mexico will fund its transactions through Ex-Im Bank-guaranteed bonds issued via the capital markets.

Andres Conesa, Grupo Aeromexico's CEO, commented: "This financing structure is unprecedented among Mexican private-sector companies. Grupo Aeromexico is therefore one of the few players in the country to have access to such a source of funds with a highly competitive cost. The transaction also reaffirms the Ex-Im Bank's importance as a strategic partner for Aeromexico's long-term sustainable growth in the coming years."

"Today's successful bond issuance by Aeromexico shows how Ex-Im Bank is continuing to use the capital markets to help support American jobs. The Ex-Im Bank Guaranteed Bond is a proven means of financing U.S. exports. We hope to strengthen our partnership with Aeromexico as it continues to acquire U.S.-manufactured aircraft, and we are also looking to increase our financing for other Mexican borrowers who buy 'Made in the USA' products and services," said Ex-Im Bank Chairman and President Fred P. Hochberg.

Aeromexico is the issuer of the secured Notes through the SPV Mexican Aircraft Finance IV, LLC. J.P. Morgan and Citigroup are acting as joint book-running managers and Structuring Agents for the offering of the Notes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Grupo Aeromexico

Grupo Aeromexico, S.A.B. Ltd., is a holding company with subsidiaries that are engaged in commercial aviation in Mexico as well as the promotion of passenger loyalty programs. The Company has a fleet of Boeing 777, 767, 737 and the latest models of Embraer 145, 170 and 190. Grupo Aeromexico began an important expansion plan 2011 which includes the incorporation of 20 new aircraft and properties over the next 24 months. In 2012, Aeromexico announced that it signed a letter of intent to purchase 100 Boeing aircraft, 90 Boeing 737 MAX and 10 Boeing 787-9 Dreamliner; the largest investment program in Mexican aviation history.

Grupo Aeromexico operates its main hub out of Terminal 2 in the Mexico City International Airport. The Group's airlines operate more than 600 daily flights to different cities in Mexico, the United States, Canada, Central and South America, as well as Europe and Asia.

Aeromexico is a founding member of SkyTeam, the global airline alliance comprised of the following 19 airlines: Aeroflot, Aerolineas Argentinas, Air Europa, Air France, Alitalia, China Airlines, China Eastern, China Southern, CSA Czech Airlines, Delta Air Lines, Kenya Airways, KLM Royal Dutch Airlines, Korean Air, Middle East Airlines, Saudia, TAROM Romanian Air Transport, Vietnam Airlines and Xiamen Air. SkyTeam offers all partner airline passengers a large global network with more destinations and frequencies, and improved connectivity. Passengers can accrue and redeem miles with the different partners' loyalty programs and enjoy the convenience provided at 525 airport lounges worldwide. SkyTeam offers its 552 million annual passengers more than 15,000 daily flights to 1,000 destinations in 187 countries.

About Ex-Im Bank:

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.. For more information, visit www.exim.gov.

Grupo Aeromexico S.A.B de C.V.

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