TRAXIÓN DEBUTS IN LOCAL DEBT MARKETS PLACING A MXN2,500 MILLION 7-YEAR BOND

Mexico City, September 10, 2020 – Grupo TRAXIÓN, S.A.B. de C.V. (BMV: TRAXION), the leading ground transportation and logistics company in Mexico, announces today that it has successfully placed a 7-year, unsecured bond (Cebures) for 2,500 million pesos (MXN), at a fixed rate of 8.98%. This placement is part of a 10,000 million-peso (MXN) program authorized by the Mexican National Banking and Securities Commission (CNBV in Spanish) and is rated AA- by both HR Ratings and Verum, and A by Fitch Ratings.

TRAXIÓN will use the proceeds to:

• Replace outstanding credit facilities;
• Extend the overall maturity profile;
• Improve cash flows, and
• Optimize its financing costs.

The transaction was oversubscribed, and the bonds were listed on Bolsa Institucional de Valores (BIVA). This transaction will not affect TRAXIÓN’s leverage ratios.

“This is TRAXIÓN’s first public debt transaction and represents yet another very important milestone in the history of the company. This issuance significantly improves our debt profile and further improves the balance sheet. This major event reflects the confidence of the market in the company and its long-term, sustainable value creation business model.” – commented Aby Lijtszain, Executive President and Co-Founder of TRAXIÓN.

Miranda Newswire – Full Press Release: Download PDF

Investor Relations Contact Details

Antonio Tejedo
Investors
Tel: +52 55 5046 7900
E-mail: ir@traxion.global

Alejandra Méndez
Media
Tel: +52 55 5046 7900
E-mail: a.mendez@traxion.global

Forward-looking statements

This document may contain forward-looking statements that involve risks and uncertainties. Words such as “estimate”, “project”, “plan”, “believe”, “expect”, “anticipate”, “seek”, and other similar expressions must be identified solely as forward-looking statements. Grupo TRAXIÓN warns readers that the statements or estimates mentioned in this document, or stated by the Grupo TRAXIÓN management team, are subject in their entirety to risks and uncertainties that are out of the Company’s control and may cause its results to differ materially from the management’s expectations. These forward-looking statements reflect the Company’s judgment as of the date of this release. Grupo TRAXIÓN reserves the right to update the information herein contained in this document or derived from it as it deems appropriate. Grupo TRAXIÓN’s past or present performance is not an indicator that guarantees its future performance.”

About TRAXIÓN

TRAXIÓN is the leading transportation and logistics company in Mexico. It offers a one-stop solution through the broadest and most diverse service portfolio in the country. TRAXIÓN’s platform operates two main business segments: cargo & logistics, and personnel and student transportation. The Company has 7 highly recognized brands, known for their leadership in different niches of the sector. TRAXIÓN was founded in 2011 and ended 2Q20 with an average fleet of 8,206 power units, 455,735 square meters of warehousing space, a national footprint, more than 1,000 clients, and more than 15,000 employees. TRAXIÓN’s most important competitive advantages are having an experienced and committed management team, being the only consolidator in a highly fragmented industry, being the only institutional company in a sector dominated by family-owned companies, having a diversified, premium service portfolio, having strong and long-lasting relationships with clients and suppliers, and having first-mover advantage. Cargo and Logistics – This segment provides solutions in cargo and logistics throughout the supply chain. Amongst the services rendered are dedicated freight, truckload, less-than-truckload, intermodal, refrigerated freight, petrochemicals and specialized transportation, border transfers, warehouse management, last-mile logistics solutions, moving and relocation services, parcel and courier services. TRAXIÓN operates 6 leading and recognized brands: Transportadora EGOBA, Muebles y Mudanzas MYM, Grupo SID, Auto Express Frontera Norte, Autotransportes El Bisonte, and Redpack. The Company operates one of the youngest, most modern, and flexible fleets in the industry with an average age of 4.5 years and an average of 2,131 power units, including 618 last-mile fleet units, at the end of 2Q20. Personnel and Student Transportation – This segment provides personnel transportation services to corporates, industrial parks, and hotels as well as student transportation to schools and colleges, and complementary tourism services for private groups. Through its subsidiary LIPU, TRAXIÓN operates a centralized platform under dedicated and spot contracts and the largest and most modern fleet of buses in Mexico with an average of 5,457 power units at the end of 2Q20.