Finacity Corporation has closed and funded an enhanced trade receivables securitization for Papel, Cartón y Derivados (PCD), a private paperboard and containerboard manufacturer based in Mexico.
Acting as the arranger, master servicer and bond administrator, Finacity has structured a seven-year transaction that provides fixed-rate funding for receivables assigned from PCD.
This facility replaces a previous trade receivables securitization and provides for a comparatively higher advance rate, a larger eligible pool, a lower cost of funds and a longer maturity.
The senior tranche of up to Mex$270mn, is rated ‘A.mx’ by Standard & Poor’s Mexico and is expected to mature in 2015.
As bond administrator, Finacity will generate daily reports for PCD, investors and rating agencies to provide all parties with visibility to assets, collateral values, cash flows and receivables performance.
“Especially considering the adverse credit environment, we are very pleased to have worked with Finacity to launch a longer term, better priced, highly rated and collateral maximising funding that proved compelling to PCD and a multi-national investor. This transaction demonstrates PCD’s continued strong performance and cost-efficient access to the capital markets,” comments Refugio Gonzalez, PCD’s chairman.
Finacity specialises in providing securitization-based trade receivables funding solutions as well as servicing, detailed transaction transparency and reporting capabilities. Its strategic partners and investors include: ABN Amro, Bank of America, Euler Hermes, ACI, Amroc Investments, Avenue Capital, Ecoban and Kleiner Perkins Caufield & Byers.
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