Cox raises $800M in hybrid capital to cut Mexican debt
What's the deal? Cox Infrastructure GroupDealroom has a profile for this one. Try Dealroom → has placed an $800 million hybrid capital issue through its Mexican subsidiary, Cox Asset MéxicoDealroom has a profile for this one. Try Dealroom →, targeting international institutional investors, according to a filing with Spain's National Securities Market Commission (CNMV). The deal drew demand above $2.5 billion — more than three times oversubscribed — from around 125 institutional investors across the US, UK, Europe, Asia, and other regions.
The terms: The perpetual, subordinated instrument carries an initial annual coupon of 8.75%. CoxDealroom has a profile for this one. Try Dealroom → has a first call option starting September 17, 2031.
What's the money for? Cox will use the proceeds mainly to repay the $733 million term loan taken to refinance its acquisition of Iberdrola MéxicoDealroom has a profile for this one. Try Dealroom →. Because the hybrid counts fully as equity under International Financial Reporting Standards, it lets Cox swap senior debt for capital.
Why now? The move cuts Cox Asset México's net leverage from 4.3 times EBITDA to below 3 times — the level Moody's requires for the company to reach investment grade. Fitch already rates the subsidiary BBB-, within investment grade, while Moody's holds it at Ba1.
What's the endgame? Cox says the issue is the first step in a defined roadmap to secure an investment-grade rating sooner than planned. The deal also eliminates principal maturities for roughly the next five years, reducing refinancing risk and adding stability to the subsidiary's capital structure.
The signal: The size stands out. Among post-IPO equity rounds in Spain's energy sector over the past four years, Cox's $800 million ranks in the 97th percentile — a sign of strong institutional appetite for a company reworking its balance sheet toward investment grade.
Read more: bolsamania.com
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