Mexico's Alsea raises over $500 mln in secondary offering

MEXICO CITY, June 24 Tue Jun 24, 2014 11:56pm EDT

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MEXICO CITY, June 24 (Reuters) - Mexican restaurant operator Alsea on Tuesday priced a $500 million secondary stock offering at 45.75 pesos a share, just 0.8 percent below its Tuesday's closing price, a person familiar with the offering said.

Alsea, which operates Starbucks coffee shops and Domino's Pizza and Burger King restaurants in Mexico, is raising cash to pay debt it took on to buy a restaurant business from Wal-Mart de Mexico.

Not including an over-allotment option that could increase the offering by 15 percent, Alsea planned to sell up to 162 million shares, raising 7.412 billion pesos ($569.9 million), according to the prospectus.

Alsea closed its purchase of Walmex's restaurants in May, after regulatory approval.

The business includes 360 restaurants, most of which are part of the Vips diner chain.

Alsea plans to use the proceeds from the offering to partly pay 5.2 billion pesos in loans from HSBC, Citigroup's Mexico unit Banamex and Spain's BBVA that financed the purchase, according to the prospectus. Those three banks were also the bookrunners for the equity offering.

As well as its restaurants in Mexico, Alsea also operates Burger King and PF Chang's among other franchises in Argentina, Chile and Colombia. ($1 = 13.0068 Mexican Pesos) (Reporting by Elinor Comlay; Editing by Anand Basu)

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