Grupo KUO, S.A.B. de C.V. Announces Pricing of its US$450 Million Senior Notes Due 2027

MEXICO CITY, June 29, 2017 /PRNewswire/ -- Grupo KUO, S.A.B. de C.V. ("Grupo KUO" or the "Company") announced today the pricing of US$450 million aggregate principal amount of its senior notes due 2027 (the "Notes").

The Notes will be issued at a price of 100% of the principal amount, plus accrued interest, if any, from July 7, 2017, and will bear interest at an annual rate of 5.75%, payable semi-annually on January 7 and July 7 of each year starting on January 7, 2018. The Notes will mature on July 7, 2027. The offering is expected to close on July 7, 2017.

Grupo KUO intends to use the net proceeds from the sale of the Notes to fund the tender offer and consent solicitation for its outstanding 6.25% senior notes due 2022 (including the payment of any accrued and unpaid interest), to redeem any 2022 notes that remain outstanding after consummation of the tender offer and consent solicitation, to repay certain indebtedness and to the extent any proceeds remain, for general corporate purposes.

The Notes will be issued in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in offshore transactions pursuant to Regulation S under the Securities Act.

The Notes have not been and will not be registered under the Securities Act or the securities laws of any state and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

The Notes have not been and will not be registered with the Mexican National Securities Registry maintained by the Mexican National Banking and Securities Commission, and may not be offered or sold publicly in Mexico. The Notes may be offered in Mexico to qualified and institutional investors, pursuant to the private placement provisions set forth in Article 8 of the Mexican Securities Market Law.

Forward-Looking Statements
This release may contain certain "forward-looking statements" within the meaning of the United States federal securities laws. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate", "believe", "expect", "estimate", "plan" and similar expressions are generally intended to identify forward-looking statements. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

About Grupo KUO
Grupo KUO is a leading industrial conglomerate in Mexico, with annual sales of approximately MXN Ps.33.6 billion during 2016, exports to around 70 countries across every continent and approximately 20,000 employees. Its current business portfolio includes six Strategic Business Units: Pork Meat, Herdez Del Fuerte (brand processed foods), Synthetic Rubber, Polystyrene, Aftermarket and Transmissions.

For more information visit: www.kuo.com.mx.

SOURCE Grupo KUO, S.A.B. de C.V.