Borrowings |
|
|
|
|
2019 |
|
|
2018 |
|
Line of credit with MCRF P, S.A. de C.V. SOFOM, E.N.R. of Ps. 600,000, bearing interest at a fixed rate of 13.10%. This line of credit is payable on a quarterly basis starting May 15, 2019 through May 15, 2023. BLSM Latino América Servicios, S.A. de C.V., is a guarantor in this loan. |
|
|
|
Ps. |
516,597 |
|
|
|
592,252 |
|
|
|
|
|
|
|
|
|
|
|
|
Secured line of credit with Banamex, for up to Ps. 400,000, bearing interest at the TIIE rate plus 317 basis point. Withdrawals from this line of credit can be made during a 10-month period starting December 15, 2018, and are payable on a quarterly basis from December 17, 2019 up to December 18, 2025. |
|
|
|
|
135,209 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured line of credit with Banamex, for up to Ps. 80,000, bearing interest at the TIIE rate plus 275 basis points (renewable on a yearly basis). |
|
|
|
|
15,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured line of credit with Banamex, for up to US$ 1,800, bearing interest at LIBOR rate plus 300 basis point. Maturity was on March 31, 2018. |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Interest payable |
|
|
|
|
10,907 |
|
|
|
11,227 |
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
|
|
|
677,713 |
|
|
|
653,479 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Current portion |
|
|
|
|
148,070 |
|
|
|
90,691 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
|
Ps. |
529,643 |
|
|
|
562,788 |
|
As
of December 31, 2019, the fair value of borrowings amounted Ps. 679,188. As of December 31, 2018, the fair value of borrowings
is considered to be similar to the book value (at amortized cost) determined by using the effective interest method.
Interest
expense in connection with debt presented above is included in the interest expense line in the combined statement of profit or
loss and other comprehensive income.
Reconciliation
of movements of liabilities to cash flows arising from financing activities
The
table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash
changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified
in the Group’s combined statement of cash flows as cash flows from financing activities.
|
|
|
|
Long-term
debt |
|
|
Interest
payable |
|
|
Derivative
financial
instruments, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018 (1) |
|
|
|
Ps. |
607,250 |
|
|
|
10,043 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes that represent cash flows - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans obtained |
|
|
|
|
50,667 |
|
|
|
- |
|
|
|
- |
|
Restricted cash |
|
|
|
|
(2,001 |
) |
|
|
- |
|
|
|
- |
|
Payments |
|
|
|
|
(36,829 |
) |
|
|
(85,159 |
) |
|
|
- |
|
Commissions and debt issuance cost |
|
|
|
|
(667 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes that do not represent cash flows - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
- |
|
|
|
86,343 |
|
|
|
- |
|
Valuation effects of derivative financial instruments |
|
|
|
|
- |
|
|
|
- |
|
|
|
16,629 |
|
Amortization of commissions and debt issuance cost |
|
|
|
|
1,744 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2018 (1) |
|
|
|
Ps. |
620,164 |
|
|
|
11,227 |
|
|
|
16,629 |
|
Changes that represent cash flows - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans obtained |
|
|
|
|
104,500 |
|
|
|
- |
|
|
|
- |
|
Restricted cash |
|
|
|
|
22,940 |
|
|
|
- |
|
|
|
- |
|
Payments |
|
|
|
|
(82,996 |
) |
|
|
(76,465 |
) |
|
|
- |
|
Commissions and debt issuance cost |
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes that do not represent cash flows - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
- |
|
|
|
85,429 |
|
|
|
- |
|
Borrowing costs capitalized on PP&E |
|
|
|
|
- |
|
|
|
(9,284 |
) |
|
|
|
|
Valuation effects of derivative financial instruments |
|
|
|
|
- |
|
|
|
- |
|
|
|
15,680 |
|
Amortization of commissions and debt issuance cost |
|
|
|
|
2,198 |
|
|
|
- |
|
|
|
- |
|
Balances as of December 31, 2019 |
|
|
|
Ps. |
666,806 |
|
|
|
10,907 |
|
|
|
32,309 |
|
|
(1) |
Balances
in column “Long-term debt”, are presented net of restricted cash balances
as of December 31, 2018. See Note 5 for details about restricted cash. |
The
Group’s long-term debt maturities as of December 31, 2019, are as follows:
Year |
|
|
|
Amount |
|
|
|
|
|
|
|
2021 |
|
|
|
Ps. |
185,447 |
|
2022 |
|
|
|
|
169,312 |
|
2023 |
|
|
|
|
245,343 |
|
2024 |
|
|
|
|
23,611 |
|
2025 |
|
|
|
|
54,000 |
|
|
|
|
|
Ps. |
677,713 |
|
The
loans with financial institutions referred to above contain restrictive covenants, which require the Group (i) to continue to
perform the same type of activities and businesses, maintaining their legal existence, (ii) complying with all applicable laws,
(ii) having its combined financial statements audited by internationally recognized auditors authorized by the financial institution,
(iii) paying all applicable taxes, (iv) obtaining all licenses and permits required by government to operate, (v) keeping assets
and businesses insured against loss or damage, (vi) not to obtain additional loans exceeding Ps. 100,000 or 60% of earnings before
interest, taxes, depreciation and amortization (EBITDA) of the immediately preceding year, (vii) not to incur liens on the Group’s
assets, (viii) not to give or sell any rights of financial documents and (ix) not to pay dividends in an amount greater than Ps.
200,000; except in 2019 when it was permitted to pay up to Ps. 350,000. It is important to mention that additional debt may be
obtained, or dividends may be paid in amounts greater than those stipulated in the contract if prior consent from such financial
institution is obtained.
The
line of credit agreement with MCRF P, S.A. de C.V. SOFOM, E.N.R. contains the following financial covenants:
|
a) |
To
maintain a leverage ratio equal to or lower than 3.0 during 2018; and 2.5 from January
1, 2019, until the contract expiration date. |
|
b) |
To
maintain a coverage interest ratio equal to or greater than 2.5 during all term of the
contract. |
|
c) |
Not
to maintain the equity book value lower than Ps. 100,000. |
|
d) |
To
maintain a minimum cash and cash equivalents balance of Ps. 40,000 |
The
line of credit agreement with Banamex contains the following financial covenants:
|
a) |
To
maintain a short-term debt coverage ratio not lower than 1.5. |
|
b) |
To
maintain a total debt coverage ratio not greater than 3.0. |
|
c) |
To
maintain a leverage ratio not greater than 7.0. |
|
d) |
To
maintain a minimum cash and cash equivalents balance of Ps. 40,000 |
The
Group was in compliance with all covenants as of December, 31, 2019 and 2018. The Group obtained permission from Banamex prior
to December 31, 2019 to consummate the merger disclosed in Notes 1 and 28c.
|