Aeroméxico’s $400 Million Bond Offering

Cleary Gottlieb represented the initial purchasers in the offering. In Mexico Ritch, Mueller, Heather y Nicolau advised Goldman Sachs and Morgan Stanley on the deal

Aerovías de México, S.A. de C.V. (“Aerovías”), the operating subsidiary of Grupo Aeroméxico, S.A.B. de C.V. (“Grupo Aeroméxico” and, together with Aerovías, “Aeroméxico”), issued the inaugural debt offering of $400,000,000 aggregate principal amount of 7.000% Senior Notes due 2025, guaranteed by Grupo Aeroméxico.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., BBVA Securities Inc. and Santander Investment Securities Inc. acted as initial purchasers for the offering.

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. The transaction closed on February 5, 2020.

The proceeds of the offering will be used for the prepayment of outstanding short-term debt, to finance capital expenditures relating to the financing, maintenance and operation of its fleet and for general corporate purposes.

Aeroméxico is Mexico’s flag carrier airline, as well as Mexico’s leading airline in terms of market share, fleet size and network.  As Mexico’s only full-service carrier, Aeroméxico offers 577 daily passenger flights on average, servicing 43 domestic and 46 international destinations from Mexico.  Aeroméxico is a founding member of the SkyTeam alliance and is engaged in a close strategic partnership with Delta Air Lines, Inc.

The Cleary team included partners Jorge Juantorena (Picture) and Manuel Silva, associate Laura Daugherty and international lawyer Laura Hernández Osorio, with assistance from associate Patricia de Lucio.  Partner Paul Marquardt advised on U.S. sanctions matters.  Partner Jason Factor and associates Benjamin Hanson and Michael Sims provided tax advice.  Counsel Mary Alcock advised on ERISA matters.

In Mexico, Ritch, Mueller, Heather y Nicolau advised Goldman Sachs and Morgan Stanley with a team including Luis Nicolau Gutiérrez, Javier Barrera Gazcón and Luis Alonso Suárez del Real Tostado.

Involved fees earner: Mary Alcock – Cleary Gottlieb Steen & Hamilton; Laura Daugherty – Cleary Gottlieb Steen & Hamilton; Patricia de Lucio – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Benjamin Hanson – Cleary Gottlieb Steen & Hamilton; Laura Hernández Osorio – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Paul Marquardt – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Michael Sims – Cleary Gottlieb Steen & Hamilton; Javier Barrera Gazcon – Ritch, Mueller, Heather y Nicolau, SC; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Luis Alonso Suárez del Real Tostado – Ritch, Mueller, Heather y Nicolau, SC;

Law Firms: Cleary Gottlieb Steen & Hamilton; Ritch, Mueller, Heather y Nicolau, SC;

Clients: Barclays Capital ; BBVA Securities Inc.; Goldman Sachs; Goldman Sachs & Co.; Morgan Stanley; Santander Investment Securities Inc.;

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Author: Ambrogio Visconti