Molinos Río de la Plata

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Molinos Rio de la Plata S.A.
Type
Founded
Headquarters	Buenos Aires, Argentina
Key people	Gregorio Perez Companc (Chairman) Juan Manuel Forn (CEO).
Industry	Branded Foods
Parent	PC Holdings
Website	www.molinos.com.ar

Molinos Rio de la Plata is Argentina's largest branded food products company. The company is a large exporter of sunflower processed oil and is one of Argentina's main exporters of bottled oil. Molinos also produces a wide range of packaged foods for domestic consumption, including bottled oil, margarine, pasta, pre-mixes, packaged flours, yerba mate, rice, cold cuts, and frozen foods.

[edit] Financial performance

On August 1, 2002, Molinos Rio de la Plata (Molinos) announced the partial repurchase of its USD $150 million Senior Secured Export Notes (SENs) due 2006. Molinos repurchased USD $31.4 million face value of the notes at a 25% discount, using available cash balances. Following the repurchase, the amount outstanding on the SENs is USD $52.6 million.

The transaction has improved Molinos' financial profile by reducing the debt burden and lowering debt servicing costs. Molinos remains current on its scheduled debt payments. Notwithstanding, Molinos' credit risk remains high due to the negative financial ramifications of the peso's devaluation and the adverse economic environment in the country. On a pro forma basis at June 30, 2002, after accounting for the repurchase, Molinos' total consolidated financial debt reached Arg$718.8 million (approximately USD $188 million at a US$1: Arg$3.82 exchange rate), mainly comprised of a balance outstanding on its SENs of US$52.6 million and US$84 million in working capital finance, most of it dollar denominated.^[1]

[edit] Notes