Crédito Real Makes $625 Million Global Bond Offering

July 14, 2016

Cleary Gottlieb is representing initial purchasers and dealer managers Barclays, Deutsche Bank and Morgan Stanley in a high-yield global bond offering and related liability management transaction by Crédito Real, S.A.B. de C.V., SOFOM, E.R.

The offering consisted of $625 million 7.250 percent senior notes due 2023 issued and sold by Crédito Real, and was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the United States in reliance on Regulation S. The issuance priced on July 13, 2016, and is expected to close on July 20, 2016.

Crédito Real will use the proceeds of the offering primarily to purchase any and all of its outstanding 7.500 percent senior notes due 2019 through a cash tender offer launched on July 6, 2016, which included a concurrent exit consent solicitation to remove a number of restrictive covenants from the existing notes. The tender offer and consent solicitation are expected to have an early settlement on July 20, 2016, and to expire on August 2, 2016.

Crédito Real is a leading specialty finance company in Mexico with presence in the United States, Costa Rica, Panama and Nicaragua. The company focuses on consumer lending, and has a diversified and scalable business platform focused primarily on payroll loans, durable goods loans, small business loans, group loans, used car loans and personal loans. The company offers products to the low- and lower middle-income segments of the population, which historically have been underserved by other financial institutions.