Mexichem, S.A.B. de C.V.’s $1 Billion Notes Offering


Cleary Gottlieb Steen & Hamilton, Bufete Robles Miaja, Davis Polk & Wardwell and Creel, García-Cuéllar, Aiza y Enríquez advised on the transaction

Mexichem finalized the offering of its investment-grade global bond offering of $500 million 4 percent senior notes due 2027 and $500 million 5.5 percent senior notes due 2048, guaranteed by several subsidiaries of Mexichem located in Mexico, the United States, the United Kingdom, Colombia, Ecuador and Brazil.

The proceeds of the offering will be used to repay its indebtedness, to finance its prospective strategic acquisitions, including the acquisition of 80 percent of the voting shares of capital stock of Netafim, Ltd., a global leader in smart irrigation solutions, with any remaining proceeds used for general corporate purposes. The bond 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. The transaction priced on September 27, 2017, and closed on October 4, 2017.

BBVA, J.P. Morgan, Morgan Stanley and MUFG acted as joint bookrunners, and Leumi Partners Underwriters Ltd. and Poalim IBI – Underwriting and Issuing Ltd. acted as co-managers for the offering.

Mexichem is a leading supplier of products and solutions in multiple sectors, from petrochemical to construction, infrastructure, agricultural, health, transportation, telecommunications and energy, among others, through a group of companies located in the American and European continents, as well as in some Asian and African countries. They are one of the leading producers of plastic pipes and fittings worldwide and one of the leading chemical and petrochemical companies in Latin America. Cleary has participated in multiple prior debt and equity capital markets transactions by Mexichem, including a $750 million global bond offering in 2014.

Cleary Gottlieb Steen & Hamilton advised Mexichem, S.A.B. de C.V. with Jorge Juantorena (Picture), Karen Maulhardt, Jessica Repond, David Stuckey and Leidy Valencia.

Robles Miaja advised Mexichem, S.A.B. de C.V. with Rafael Robles Miaja, María Luisa Petricioli and Gerardo Pérez-Chow Martínez.

Davis Polk & Wardwell advised BBVA, J.P. Morgan, Morgan Stanley and MUFG, Leumi Partners Underwriters Ltd. and Poalim IBI – Underwriting and Issuing Ltd. with Manuel Garciadiaz, Drew Glover, Alon Gurfinkel, Joshua S. Sills, Dorothy A. Jenke Hill and Veronica Orecharova.

Creel, García-Cuéllar, Aiza y Enríquez, advised the underwirthers with Mercedes Haddad, Miguel Téllez and Elvira Pérez.

Involved fees earner: Rafael Robles Miaja – Robles Miaja Abogados; María Luisa Petricioli – Robles Miaja Abogados; Gerardo Pérez-Chow – Robles Miaja Abogados; Mercedes Haddad – Creel, García-Cuéllar, Aiza y Enriquez SC; Miguel Téllez Córdova – Creel, García-Cuéllar, Aiza y Enriquez SC; Elvira Pérez Sepúlveda – Creel, García-Cuéllar, Aiza y Enriquez SC; Manuel Garciadiaz – Davis Polk & Wardwell; Drew Glover – Davis Polk & Wardwell; Joshua Sills – Davis Polk & Wardwell; Alon Gurfinkel – Davis Polk & Wardwell; Veronica Orecharova – Davis Polk & Wardwell; Dorothy Jenke Hill – Davis Polk & Wardwell; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Karen Maulhardt – Cleary Gottlieb Steen & Hamilton; Jessica Repond – Cleary Gottlieb Steen & Hamilton; David Stuckey – Cleary Gottlieb Steen & Hamilton;

Law Firms: Robles Miaja Abogados; Creel, García-Cuéllar, Aiza y Enriquez SC; Davis Polk & Wardwell; Cleary Gottlieb Steen & Hamilton;

Clients: JP Morgan; Morgan Stanley; Banco Bilbao Vizcaya Argentaria (Bbva); Mexichem, S.A.B. de C.V.; Leumi Partners Ltd.; Poalim IBI – Management and Underwriting Ltd.;