Axo’s $325 Million Bond Offering

Cleary Gottlieb and Ritch, Mueller y Nicolau represented Morgan Stanley, BBVA, BofA Securities, and HSBC, as initial purchasers, in the offering. Simpson Thacher and Creel, García-Cuéllar, Aiza y Enríquez represented Grupo Axo in the transaction.

Grupo Axo, S.A.P.I. de C.V. (Axo) executed its debut global bond offering of $325 million 5.75% senior notes due 2026 issued, which are guaranteed by several of Axo’s Mexican subsidiaries.

The offering was conducted as a private placement under Rule 144A under the Securities Act of 1933 and outside of the United States in reliance on Regulation S. The transaction priced on June 1, 2021, and closed on June 8, 2021. Axo will use the proceeds of the offering for repayment of indebtedness and general corporate purposes.

Axo is a leading Mexican multi-brand, fashion platform with 27 years of experience distributing and operating a portfolio of nationally and internationally recognized brands. Axo owns the leading off-price retailer in Mexico, a subscription based, off-price online marketplace, and the leading streetwear sneakers platform in Mexico. In total, Axo operates 5,649 retail and wholesale points of sale and 14 online stores.

The Cleary corporate team included partners Jorge Juantorena (Picture) and Manuel Silva, associate Ethan Back, and international lawyer Gabriela Gallo. Partner Jason Factor and associates Zhiyuan Zuo and Samuel Kramer provided tax advice.

In Mexico, Ritch, Mueller y Nicolau advised the underwriters with  Jean Paul Farah Chajín, Gabriel Robles Beistegui and Luis Miguel Posadas Yáñez.

The Simpson Thacher team for the offering included Todd Crider, Kirsten Davis and Enrique Güijosa (Capital Markets – Latin America); and Andrew Purcell and Suzy Yaster (Tax).

In Mexico, Creel, García-Cuéllar, Aiza y Enríquez advised Grupo Axo with Jean Michel Enríquez D., Rodrigo Castelazo D., Jorge Correa Cervera, Diego Barrera, Mauricio Rascón Kuri, Javier Lavalle Albarrán, Luis Michel Sánchez O´Sullivan and Anamaría Melina Clares.

Involved fees earner: Ethan Back – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Gabriela Gallo – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Zhiyuan Zuo – Cleary Gottlieb Steen & Hamilton; Diego Barrera Pieck – Creel, García-Cuéllar, Aiza y Enriquez SC; Rodrigo Castelazo – Creel, García-Cuéllar, Aiza y Enriquez SC; Jorge Correa Cervera – Creel, García-Cuéllar, Aiza y Enriquez SC; Jean Michel Enriquez – Creel, García-Cuéllar, Aiza y Enriquez SC; Javier Lavalle Albarrán – Creel, García-Cuéllar, Aiza y Enriquez SC; Mauricio Rascón Kuri – Creel, García-Cuéllar, Aiza y Enriquez SC; L. Michel Sánchez O’Sullivan – Creel, García-Cuéllar, Aiza y Enriquez SC; Jean Paul Farah Chajín – Ritch, Mueller, Heather y Nicolau, SC; Luis Miguel Posadas Yáñez – Ritch, Mueller, Heather y Nicolau, SC; Gabriel Robles Beistegui – Ritch, Mueller, Heather y Nicolau, SC; Todd Crider – Simpson Thacher & Bartlett; Kirsten Davis – Simpson Thacher & Bartlett; Enrique Güijosa Rincón – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; Susan Yaster – Simpson Thacher & Bartlett;

Law Firms: Cleary Gottlieb Steen & Hamilton; Creel, García-Cuéllar, Aiza y Enriquez SC; Ritch, Mueller, Heather y Nicolau, SC; Simpson Thacher & Bartlett;

Clients: Bank of America Securities; BBVA Argentina (BBVA); Grupo Axo, S.A.P.I de C.V.; HSBC; Morgan Stanley;

Author: Martina Bellini