search   Knowledge Bank printable version
 News
 Knowledge Bank
 Deal Information
 International
 Software
 Publications
 Industry Events
 Advocacy Forums
 Links
 Site Utilities
 Contributors
 Free Offers
 Home

Click here to
Update Registration
Information

Please be advised that the use of Securitization.net ®
is subject to the
Terms & Conditions

of use and the
Privacy Policy

Download

Best viewed in

Knowledge Bank > Rating Criteria > Trade Receivables
Select an area


Special Extended free trial for site members.

Mexico's PCD Does It for Finacity
Asset Securitization Report--SourceMedia (July 28, 2008)

Filepe Ossa

Finacity Corp. recently closed a trade receivables transaction for Papel, Carton y Derivados, a Mexican paperboard and containerboard maker that markets under the slogan "PCD does it for you."

The deal's senior tranche totaled Ps270 million ($27 million), with a maturity of seven years and a rating of 'mxA' by Standard & Poor's. Pricing was undisclosed, and the deal does not carry a global scale rating. Finacity wore the hats of arranger, master servicer and bond administrator.

The transaction went to a single, unnamed investor. Enhancement was provided by a subordinated piece that the originator retained. Typical for a trade receivable transaction, the subordination level oscillates every day.

As a bond administrator, Finacity generates daily reports for the different parties in the transaction. "Trade receivables are very intensive assets; things can and do happen to them daily," said Finacity CEO Adrian Katz. "They can be outstanding for only thirty days, which necessitates thorough and detailed reporting." The originator performs the regular servicing functions.

He added that the current credit environment favors trade receivable transactions. Finacity has more of these deals from Mexico in its pipeline.

The transaction has only a single rating. "It's a fairly small deal," Katz said. "It didn't necessitate more than one rating to satisfy the investor."

Headquartered in Celaya, Mexico, PCD generates about $1 billion annually in sales. The last time Finacity landed in the pages of ASR was with an airline receivables deal linked to Northwest Airlines (ASR, 2/17/07).

(c) 2008 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.
http://www.structuredfinancenews.com
http://www.sourcemedia.com/

 

 

© Copyright 2014. The Mayer Brown Practices. All rights reserved.

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the “Mayer Brown Practices”). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

Legal Notices | Attorney Advertising | Site Index | Contact Webmaster

*The site links listed on this web site are for reference use only.
The firm does not necessarily sponsor, endorse or verify the accuracy of the content contained in any of these sites.