Frigoglass bonds surge on plan to sell glass unit to reduce debt
Bonds of Frigoglass SAIC surged to an eight- month high after the Greek refrigeration supplier said it will sell its glass unit to pay down debt and focus on its core cooling business.
The company?s 250 million euros ($279 million) of 8.25 percent notes due May 2018 rose 4.9 cents on the euro to 100.7 cents, according to data compiled by Bloomberg.
GZI Mauritius Ltd. will pay $225 million for all of the glass container operations in Nigeria and Dubai along with the plastic crate and metal crowns operations in Nigeria, Frigoglass said in a statement. Efforts to consolidate manufacturing operations in other regions helped increase Frigoglass?s earnings by 85 percent in the fourth quarter, it said in March.
?This move will substantially deleverage our balance sheet as well as allow us to focus on developing our cooler business into a new dimension,? Chief Executive Officer Torsten Tuerling said in the statement.
Officials at the Athens-based company couldn?t immediately be reached for comment.