In March of last year, Georgals debuted in the capital market with the issuance of Negotiable Obligations (NO) that allowed it to raise US$2 million to finance its expansion plan that, among other things, included the purchase of various brands such as Toddy and Zucoa from Pepsico.
At that time, the company that created Mantecol developed a financial plan to obtain fresh funds that would allow it to extend payment terms for part of its debt and the rest for what in financial jargon is known as capex or investment to maintain or expand assets. of capital such as factories, machinery, vehicles.
It was the first issue of ON issued by the company in its 80-year history for US$3,229,080 (dollar-linked) in the local market at a rate of 0%, with a term of 36 months and with an oversubscription of more than twice the maximum amount of the issuance.
Georgalos used the money to purchase several state-of-the-art equipment for its Río Segundo and Luján plants, where it produces breakfast cereals and chocolates, respectively, in addition to refinancing part of its liabilities and integrating working capital.
The issue was organized, placed and guaranteed by comafi bank and supervielle bank and it was carried out under the public offering regime for small and medium-sized companies of the National Securities Commission (CNV).
The factory created by Odysses Georgalos issued its first ON in 80 years in 2022 to finance the purchase of assets
In addition, the firm Tanoira Cassagne Abogados advised as deal counsel on this issue that had already been announced by Georgalos in August 2021 but which it later decided to suspend due to the unstable market conditions at that time.
Now, and with the support of the same banks, Georgalos has just obtained around $1,100 million in the capital markets, with the issuance of a new series of ON that, 70% was established under dollar link and 30% by rate Badlar.
The series has a term of 48 months and the proceeds will be used by the owner of Mantecol to reshape short-term debt into a long-term one.
The reason why the company’s executives undertook this restructuring process is linked to the political scenario that Argentina will star in this year, with an electoral calendar that will lead to a strong dispute for the country’s presidency and several governorships.
They understand that any government that enters the Casa Rosada after next October will have to make strong changes in economic policy, such as adjustments to control the high inflationary process that the economy is suffering.
Therefore, it is essential for the company to “schedule” its long-term debt in order to feel more comfortable and calm from the financial point of view from this possible context of changes in economic policy and the possibility of facing a country more recessive.
These are two series of titles: the ONs SME CNV Guaranteed Series II Class 1 in pesos, at variable annual nominal interest rate, maturing in 36 months from the date of issuance and settlement; and the SME CNV Guaranteed ON Series II Class 2, denominated in dollars, to be subscribed and paid in pesos and payable at a fixed rate, maturing in 48 months for a combined nominal value of up to $1,100 million.
Mantecol: the return of the “prodigal son”
In July of last year, Georgalos bought the Mantecol brand from Mondelez, that over time it had become a generic for the sector in the style of Paty and Savora for food; Gillette for shaving items or Bayaspirin to soothe a headache.
It did so after 21 years since that January 18, 2001 when it was sold to the local subsidiary of the British group cadbury schweppes due to the economic situation of the country and the bitter taste that the tequila effect left the Georgalos family.
cadbury schweppes He paid US$22.6 million, money that Georgalos used to pay off a large part of the liabilities he had accumulated, capitalize himself, and produce new products. But the operation also prevented it from competing in the peanut dessert market, where Mantecol was marketed, for seven years, after which, in 2008, it launched its new brand, Nucrem.
The operation included the plant that Mondelēz International owns in the Buenos Aires town of Victoria, where mantecol is manufactured, in addition to other traditional candies such as Giraffe, Lick, bazooka and Jungle Stickswhich also became part of the transaction.
The agreement included the continuity of employment for the almost 600 workers at the Victoria plant, as well as the fact that the Argentine company continues to produce some products.
It was also the company’s second deal in nine months if one takes into account that in October 2021 it acquired 100% of the shares of Alimesa SA, a plant that was owned by Pepsico located in the province of La Rioja and in which Toddy and Zucoa are made and they joined the Georgalos portfolio as well as Flynn Paff; Nucrem; Namur; Full Peanut; Tokke and those who would be adding Mantecol; Bazooka; Lungüetazo and Palitos de la Selva.
After 21 years, Georgalos recovered in July 2022 the Mantecol brand that had sold it in January 2001
Georgalos also has a line of chocolates without added sugars, another of confectionery and nougats, jams and Christmas baked goods, along with Flow Cereal bars and breakfast cereals after the acquisition of General Cereals.
Currently, the Georgalos Group has more than 1,000 employees, in addition to operating four production plants and two distribution centers to which it will add 600 workers and the Victoria establishment.
