The loan, which has 3-year and a 5-year installments in dollars, has an average life of debt of two and half years, which improves Vitro's debt profile.This loan, in addition to other transactions undertaken during the last few months, has allowed Vitro to significantly extend its average life from 1.8 years in December 31st, 2001 to 3.4 years on a pro forma basis as of February 28, 2003.
The loan is relevant in several ways. First, it reflects the confidence that a core group of lenders, are placing on Vitro and its management, in the middle of an adverse macroeconomic environment. Secondly, it allows Vitro to diversify its sources of financing by bringing new lenders, such as Wachovia and Caixa Nova, to participate in the deal. Thirdly, it reinforces Vitro's measures to reduce its cost of funding, extend the tenor of its indebtedness and improve its debt profile.
Vitro will use the proceeds of the facility to pay down mostly short-term maturities and some long-term debt with less favorable financial conditions.