Nemak’s €500 Million SLB Offering

Paul Hastings advised Nemak Cleary Gottlieb and Galicia represented the initial purchasers in the offering, and the dealer managers and solicitation agents in the concurrent tender offer and consent solicitation.

Nemak, S.A.B. de C.V. (“Nemak”) executed its €500 million 2.250% senior notes due 2028. In connection with the bond issuance, Nemak has adopted and published its sustainability-linked bond framework. The sustainability-linked bond framework includes certain sustainability performance targets, which reinforce Nemak’s overall strategic priorities.

The offering is being conducted as a private placement in the United States under Rule 144A and an offshore offering in reliance on Regulation S. The transaction priced on July 7, 2021, and is expected to close on July 20, 2021.  Nemak will use the net proceeds of the offering to fund a concurrent tender offer and consent solicitation with respect to its €500 million 3.250% senior notes due 2024 (2024 Notes) and the remainder, if any, for debt repayment, including the redemption of any 2024 Notes not validly tendered and accepted in the tender offer and consent solicitation.

The offering and liability management transaction are part of Nemak’s overall strategy to refinance its outstanding debt to improve its cost of capital and extend its maturity profile.

Banco Bilbao Vizcaya Argentaria, S.A., BNP Paribas, HSBC Bank plc, Merrill Lynch International, Citigroup Global Markets Limited, J.P. Morgan Securities plc and Banco Santander, S.A. acted as initial purchasers in the offering.

Nemak is a leading global provider of innovative light weighting solutions for the global automotive industry in terms of revenue and production capacity, specializing in the development and manufacturing of high-tech, complex aluminum powertrain, e-mobility, and structural components.

The Cleary team included partners Jorge Juantorena (Picture) and Manuel Silva, associate Amanda Brown, and international lawyers Gabriela Gallo and Carla Cardoza. Partner Jason Factor and associates Zhiyuan Zou and Samuel Kramer provided U.S. tax advice.

In Mexico, Galicia advised the initial purchasers with a team including Guillermo Pérez Santiago, José Alejandro Cortés Serrano, Jorge Javier Mendizábal Hori, Clarisa Jiménez and Emiliano Flores Juárez.

Paul Hastings advised Nemak with a team including Michael L. Fitzgerald, Arturo Carrillo, Joy K. Gallup,  David Makso, Pedro Reyes, Verónica Rodríguez,  Alejandra Cuadra and Robert Wilson.

Involved fees earner: Amanda Brown – Cleary Gottlieb Steen & Hamilton; Carla Cardoza Vidal – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Gabriela Gallo – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Samuel Kramer – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Zhiyuan Zuo – Cleary Gottlieb Steen & Hamilton; José Alejandro Cortés Serrano – Galicia Abogados, S.C; Emiliano Flores Juárez – Galicia Abogados, S.C; Clarisa Jiménez – Galicia Abogados, S.C; Jorge Javier Mendizábal Hori – Galicia Abogados, S.C; Guillermo Pérez Santiago – Galicia Abogados, S.C; Arturo Carrillo – Paul Hastings LLP; Michael Fitzgerald – Paul Hastings LLP; Joy Gallup – Paul Hastings LLP; David Makso – Paul Hastings LLP; Pedro Reyes – Paul Hastings LLP; Veronica Rodriguez – Paul Hastings LLP; Robert Wilson – Paul Hastings LLP;

Law Firms: Cleary Gottlieb Steen & Hamilton; Galicia Abogados, S.C; Paul Hastings LLP;

Clients: Banco Bilbao Vizcaya Argentaria (Bbva); Banco Santander Sa; BNP Paribas; Citigroup Global Markets Ltd; Hsbc Bank plc; J.P. Morgan Securities LLC; Merrill Lynch International; Nemak, S.A.B. de C.V.;

Author: Martina Bellini