Mexican retail company Controladora Comercial Mexicana (CCM) has secured a syndicated loan of MXN2.5bn ($192m) from a consortium led by Banamex and J.P. Morgan.
The retailer announced that the new unsecured credit facility with a maturity of five years was along includes three other lenders.
CCM secured the loan at interest rate of 170 base point plus Mexican Interbank Exchange rate.
Payments are due twice in a year with the retailer having the option to repay the entire amount anytime within the five year term.
The retailer will employ the funds to clear its restructuring debt of $1.5bn outstanding since 2008, which was attributed to the heavy losses the company incurred on foreign exchange derivatives.
The clearance of the debt will restrictions to its growth initiatives besides releasing all real estate properties pledged as collateral.
Having secured the loan in local currency the retailer will also lowers cost of its debt.
CCN operates a total of 197 stores across Mexico under seven different formats with the brands including Comercial Mexicana, Mega, Bodega Comercial Mexicana, Sumesa, City Market, Fresko and Alprecio.
The company also operates a chain of restaurants – Restaurantes California and Beer Factory – with a total of 75 outlets.