Alpek’s $500 Million Bond Offering

Paul Hastings LLP represented Alpek, S.A.B. de C.V. on the deal, Cleary Gottlieb represented the initial purchasers Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and MUFG Securities Americas Inc.

Alpek, S.A.B. de C.V. issued US$500 million of 4.250% Senior Notes due 2029, guaranteed by several subsidiaries of Alpek located in Mexico and the United States.

The offering was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the United States in reliance on Regulation S.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and MUFG Securities Americas Inc. acted as initial purchasers in a debt offering.

Alpek will use the proceeds of the offering for general corporate purposes, which may include the repayment or retirement of indebtedness.

Alpek, a subsidiary of Alfa (a large Mexican conglomerate) and one of the largest petrochemical companies in Mexico and Latin America, is involved in the production, marketing and sale of petrochemical products. Its products serve the food and beverage packaging, textile and industrial filaments, consumer goods, automotive, construction, agriculture, oil industry and pharmaceutical end markets.

Paul Hastings represented Alpek with a team led by partners Mike Fitzgerald (Picture) and Arturo Carrillo, and included partner Steven Sandretto, associate Eduardo Gonzalez and foreign associate Diego Plowells.

The Cleary corporate team included partner Jorge Juantorena, associate Manuel Silva, law clerk Rigoberto Chavez, and international lawyer Gabriela Gallo. Counsel Scott Borisky and associate Karl Heiland provided tax advice. All lawyers are based in New York.

Involved fees earner: Scott Douglas Borisky – Cleary Gottlieb Steen & Hamilton; Gabriela Gallo – Cleary Gottlieb Steen & Hamilton; Karl Heiland – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Arturo Carrillo – Paul Hastings; Michael Fitzgerald – Paul Hastings; Eduardo Gonzalez – Paul Hastings; Steven Sandretto – Paul Hastings;

Law Firms: Cleary Gottlieb Steen & Hamilton; Paul Hastings;

Clients: Alpek SAB de C.V.; Citigroup Global Markets Ltd; HSBC Securities; J.P. Morgan Securities LLC; MUFG Securities Americas Inc. ;

Author: Ambrogio Visconti