What was the interest cost for Bimbo Foods Bakeries Distribution in 2024?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
Other equity financial instrument
On April 17, 2018, Grupo Bimbo, S.A.B. de C.V. issued a perpetual subordinated bond of USD500 million with no maturity date. The issuer has the option to redeem the bond in full, but not partially, five years after the date of issuance. The bond bears annual interest of 5.95%, which is payable semi-annually in arrears on January 17 and July 17. Such coupons are deferrable at the Company's discretion.
This bond is subordinated to the existing and future liabilities of the Company and its subsidiaries and the coupons for the periods accrued by this instrument must be paid prior to any distribution of dividends.
On March 24, 2023, the Company announced the redemption of the perpetual subordinated bond in its first repurchase call, recognizing the following effects in equity prior to it being reclassified as debt:
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the interest cost for Bimbo Foods Bakeries Distribution in 2024 is not explicitly detailed. However, Item 14 discusses a perpetual subordinated bond issued by Grupo Bimbo, S.A.B. de C.V., the parent company, on April 17, 2018. This bond had a value of USD 500 million and bore an annual interest rate of 5.95%, payable semi-annually on January 17 and July 17. The coupons were deferrable at the company's discretion.
While the document mentions the bond's interest rate and payment schedule, it does not specify the exact amount of interest paid or accrued by Bimbo Foods Bakeries Distribution during 2024. The bond is subordinated to the liabilities of the company and its subsidiaries, and coupon payments must be made before any dividend distributions. On March 24, 2023, the company announced the redemption of this bond.
To understand the specific interest expenses incurred by Bimbo Foods Bakeries Distribution in 2024, a prospective franchisee should request detailed financial statements from the franchisor. These statements would provide a clear breakdown of all interest expenses, including those related to the subordinated bond and any other debt obligations. This information is crucial for assessing the financial health and profitability of the franchise opportunity.