America Movil wraps up bond issues for year, no acquisition plans: CFO
By Christine Murray
MEXICO CITY (Reuters) - Mexico's America Movil does not plan to issue any more bonds for more than a year after selling 1.5 billion euros in debt this week, Chief Financial Officer Carlos Garcia Moreno said on Wednesday, adding there were no acquisitions on the horizon.
"We achieved what we wanted and we don't have to go back to the market in 15 months," Garcia Moreno said in a phone interview.
Grappling with tough regulation at home and deepening recession in Brazil, America Movil raised 1.5 billion euros ($1.65 billion) when it tapped the market Monday. Garcia Moreno said the company saw euros as the most efficient choice.
He said the money raised this week would go towards refinancing some of its roughly $5 billion of debt that matures this year, while the rest will be paid with cash flow.
But the company, which is controlled by the family of billionaire Carlos Slim, won't refinance it all, hoping to cut debt by at least $3 billion this year, he said.
America Movil's net debt to earnings before interest, tax, depreciation and amortization (EBITDA) ratio, should be between 1.5 and 1.75 times within the next year, year and a half, he said.
Last year the company sold bonds convertible into shares of KPN (KPN.AS: Quote). The company still holds a 21 percent stake in the Dutch telecom firm, which it classes as "available for sale", but Garcia Moreno said it is not actively looking for a buyer.
He said there were no acquisition plans on the horizon. Continued...