Grupo IDESA’s $277 Million Exchange Offer

Cleary Gottlieb Steen & Hamilton represented Grupo IDESA, S.A. de C.V. in the deal.

Grupo IDESA, S.A. de C.V. (“Grupo IDESA”) completed an exchange offer and consent solicitation for its outstanding 7.875% Senior Notes due 2020 for 9.375% New Secured Notes due 2026.

The offering of the New Secured Notes was conducted as a private placement under the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933 and outside of the United States in reliance on Regulation S.

US$274,923,000 of the Existing Unsecured Notes (or approximately 91.64% of the outstanding principal amount thereof) were tendered in the Offer and Solicitation and US$277,672,230 of New Secured Notes were issued at settlement.

The transaction launched on March 23, 2020 and settlement occurred on May 22, 2020. This transaction was the first exchange offer launched in Latin America during the global COVID-19 outbreak and involved a complex negotiation with multiple counterparties and stakeholders, including bondholders, term loan lenders, shareholders and joint ventures.

Grupo IDESA has more than 65 years of experience in the petrochemical industry in Mexico and produces compounds that are used as raw materials in the manufacture of a vast range of products such as food and beverage packaging, clothing and footwear, construction materials, automotive industry liquids and toys, among others.

Cleary represented Grupo IDESA with a corporate team consisting of partners Richard Cooper (Picture) and Adam Brenneman, senior attorney Carina Wallance, and associates Patricia de Lucio and Amanda Brown. Partner Jason Factor and associates Michael Eis and Eric Gruebel provided tax advice.

Involved fees earner: Adam Brenneman – Cleary Gottlieb Steen & Hamilton; Amanda Brown – Cleary Gottlieb Steen & Hamilton; Richard Cooper – Cleary Gottlieb Steen & Hamilton; Patricia de Lucio – Cleary Gottlieb Steen & Hamilton; Michael Eis – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Eric Gruebel – Cleary Gottlieb Steen & Hamilton; Carina Wallance – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Grupo Idesa;

Author: Ambrogio Visconti