| Vitro fact box |
For a company that was on the distressed debt list only three years ago, 2007 marks the end of an era. At the start of the year Mexican glass-making company Vitro issued the now second biggest high-yield corporate bond by an emerging markets borrower, raising $1 billion. The deal was the final part of a major debt refinancing initiative to improve Vitro’s debt capital structure.
"These guys are golden right now," says an enthused banker. Vitro is a classic turnaround credit story. From a debt-ridden struggling company, it has sold off non-core assets, honed its capital structure, cleaned up its books and focused on two core niche businesses – the flat glass and the glass container industries. The $1 billion deal marked the last step in Vitro’s turnaround as it refinanced all debt, except its 2013 bonds. The successful deal is seen as a ripe reward for the management’s hard work over the past two years.