Orbia’s $1.1 Billion Bond Offering

Cleary Gottlieb Steen & Hamilton LLP and Ritch, Mueller, Heather y Nicolau represented Advance Corporation in the transaction, while Davis Polk and Creel, García-Cuéllar, Aiza y Enríquez advised the initial purchasers.

Orbia Advance Corporation, S.A.B. de C.V. (Orbia) executed its inaugural sustainability-linked bonds in the international capital markets of $600 million 1.875% senior notes due 2026 and $500 million 2.875% senior notes due 2031, which are guaranteed by several of its subsidiaries located in Mexico, the United States, the UK, Brazil, Colombia and Ecuador. Citigroup, J.P. Morgan and Morgan Stanley acted as joint bookrunners.

In connection with the notes offering, Orbia adopted and published its sustainability-linked bond framework establishing certain sustainability performance targets which reinforce Orbia’s overall strategic priorities. Orbia expects to use the proceeds of the offering for general corporate purposes, including debt repayment.  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 May 6, 2021 and closed on May 11, 2021.

Orbia is a leading provider of products and solutions in multiple sectors, including construction, infrastructure, agriculture, health, transportation, telecommunications, energy and chemicals, and one of the world’s largest plastic pipes and fittings suppliers.

The Cleary corporate team advising Orbia included partners Jorge Juantorena (Picture), Jeff Karpf, and Manuel Silva, associates Stephanie Fontana, and Brayan Acevedo Vazquez, and international lawyer Gabriela Gallo. Partner William McRae and associates Karl Heiland, and Jeeihn Lee advised on U.S. tax matters. Senior attorney Marc Rotter advised on Investment Company Act considerations.

In Mexico, Ritch, Mueller, Heather y Nicolau advised Orbia with Daniel Kuri Breña Rosillo, Eric Silberstein, Luis Alonso Suárez del Real Tostado and Andrea Vidal Apreza.

Davis Polk advised the initial purchasers with Manuel Garciadiaz, Drew Glover and Javier Felix. The tax team included Michael Farber and Ben Levenback.

In Mexico, Creel, García-Cuéllar, Aiza y Enríquez advised the initial purchasers with Rodrigo Castelazo D., Mercedes Haddad, Jorge Correa Cervera, Mauricio Rascón Kuri and Gerardo A. Farías López.

Involved fees earner: Brayan Acevedo Vazquez – Cleary Gottlieb Steen & Hamilton; Stephanie Fontana – Cleary Gottlieb Steen & Hamilton; Gabriela Gallo – Cleary Gottlieb Steen & Hamilton; Karl Heiland – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Jeffrey Karpf – Cleary Gottlieb Steen & Hamilton; William McRae – Cleary Gottlieb Steen & Hamilton; Marc Rotter – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Rodrigo Castelazo – Creel, García-Cuéllar, Aiza y Enriquez SC; Jorge Correa Cervera – Creel, García-Cuéllar, Aiza y Enriquez SC; Gerardo Farías Lopez – Creel, García-Cuéllar, Aiza y Enriquez SC; Mercedes Haddad – Creel, García-Cuéllar, Aiza y Enriquez SC; Mauricio Rascón Kuri – Creel, García-Cuéllar, Aiza y Enriquez SC; Michael Farber – Davis Polk & Wardwell; Javier Felix – Davis Polk & Wardwell; Manuel Garciadiaz – Davis Polk & Wardwell; Drew Glover – Davis Polk & Wardwell; Ben Levenback – Davis Polk & Wardwell; Daniel Kuri Breña Rosillo – Ritch, Mueller, Heather y Nicolau, SC; Eric Silberstein Lerner – Ritch, Mueller, Heather y Nicolau, SC; Luis Alonso Suárez del Real Tostado – Ritch, Mueller, Heather y Nicolau, SC;

Law Firms: Cleary Gottlieb Steen & Hamilton; Creel, García-Cuéllar, Aiza y Enriquez SC; Davis Polk & Wardwell; Ritch, Mueller, Heather y Nicolau, SC;

Clients: Citigroup Inc.; J.P. Morgan Securities LLC; Morgan Stanley; Orbia Advance Corporation;

Author: Martina Bellini