Grupo IMSA Obtains Syndicated Loan of US$380 Million

    MONTERREY, Mexico--Dec. 18, 2001--Grupo IMSA (BMV:IMSA) , today announced that it has obtained a long-term syndicated loan for US$380 million.
    This transaction has allowed the Company to modify the contract of an already-existing debt with an outstanding amount of US$231 million to obtain a lower interest rate, and to acquire new resources of US$149 million to be used principally to refinance short-term debt. The transaction improves Grupo IMSA's debt profile by extending its average life without increasing total indebtedness.
    Grupo IMSA used the additional resources from this syndicated loan to pay off debt that had been incurred to complete the acquisition of VP Buildings in October and other short-term debt. The reduction in interest rate will result in a significant lowering of the Company's financial expense. The success of this transaction reflects Grupo IMSA's good results and the efforts over the last five quarters to strengthen the Company's financial position.
    The syndicated loan was divided into three tranches: the first for US$120 million with a two-year maturity; the second for US$150 million with a four-year maturity; and the third for US$110 million with a five-year maturity.
    The lead arranger of the transaction was Salomon Smith Barney -- Citibank, N.A., and the syndicate was made up of: BankBoston, N.A., Wachovia Bank, N.A., BNP Paribas and JP Morgan Chase Bank, as arrangers, with ten other banks as participants.
    Marcelo Canales, CFO of Grupo IMSA, said, "The syndicated loan transaction was very successful, and we even obtained a subscription in excess of the US$380 million that we had requested. This is a very significant achievement, especially if we consider today's difficult global environment. It is further proof of the confidence that our business model inspires, a model that has traditionally allowed us to overcome economic downturns; it also reflects the respect that we have always shown to our creditors."
    Mr. Canales added, "We have achieved two objectives with this transaction: reducing the cost of our long-term debt and refinancing our short-term debt, in this way, significantly improving the Company's debt profile."