Aeromexico sells $1.1b of bonds to refinance debt

Grupo Aeromexico SAB sold $1.1b of bonds via international markets Monday that the air carrier will use to refinance debt due in the coming years. Aeromexico issued $500m of five-year notes and $610m of seven-year securities, according to data compiled by Bloomberg. Proceeds will be used in part to pay down $663m in senior secured notes due in 2027, the company said in a statement. The 2029 notes priced to yield 8.25%, while the 2031 bonds yielded 8.625%, tighter than initial guidance. Barclays was the sole bookrunner for the deal. The airline has increased its profits since emerging from bankruptcy protection in 2022, enabling it to file for a US initial public offering earlier this year. Moody’s Ratings raised its credit grade on Aeromexico to Ba3 from B2 on Monday after the bond offer was announced, placing the same rating on the new notes, and changed its outlook to positive from stable. “Given its strong operating performance that has been exceeding our expectations since 2022, Aeromexico will manage the additional indebtedness,” wrote Sandra Beltran, a senior analyst at Moody’s.<br/>