...October 28, 2024 MEXICO CITY (S&P Global Ratings) Oct. 28, 2024--S&P Global Ratings today assigned its '##-' issue-level rating to Grupo Aeromexico S.A.B. de C.V.'s proposed 144A-for-Life/Reg S senior secured notes of up to $1.1 billion. We also today assigned our '2' recovery rating to the proposed notes, reflecting our expectation of substantial recovery (70%-90%; rounded estimate: 70%) in the event of a payment default. The collateral package would be substantially similar to the existing collateral that supports the senior secured notes due 2027. Aeromexico (B+/Stable/--) plans to issue the notes under two series (five- and seven-year tenors), and it mainly intends to use the net proceeds to refinance existing debt--specifically, its outstanding $663 million notes due 2027. The company would also increase its cash balance capacity by nearly $450 million as part of this transaction. The excess proceeds from the proposed issuance would fund general corporate purposes, including transaction...
