The trust was specifically formed for this securitization transaction. Interest and principal on the debt from the Notes are payable from receivables to be originated by four subsidiaries of Vitro Plan. The Vitro Plan subsidiaries that will be assigning receivables to the trust are: Distribuidora Nacional de Vidrio, S.A. de C.V. ("Dinavisa"), Vitro Flotado Cubiertas, S.A. de C.V. ("VFC"), Vitro Automotriz, S.A. de C.V. ("VAU") , and Vitro Vidrio y Cristal, S.A. de C.V. ("VVC").
This Mechanism has proven to be cost efficient financing for Working Capital, as well as being innovative in the Mexican Market.
Vitro Plan will use the proceeds to finance working capital and debt refinancing. The transaction will not increase the company's on-balance sheet debt.
The transaction received a rating of A.mx from Standard & Poor's Mexico.
Vitro Announces Successful Closing of Trade Receivables Securitization From Its Subsidiary Vitro Plan
Vitro, S.A. de C.V. ("Vitro") (NYSE: VTO; BMV: VITROA) announced that its subsidiary Vitro Plan, S.A. de C.V. ("Vitro Plan"), Vitro's flat glass division, closed on August 22nd, 2005 the private issuance of US$21.5 million in Notes, placed through a trust, at an interest rate of 6.5 percent.