$1 Billion Inaugural Global Bond Offering by Alfa

March 25, 2014

Cleary Gottlieb represented Credit Suisse Securities, Goldman Sachs, J.P. Morgan Securities and Morgan Stanley as initial purchasers in the inaugural global bond offering by Alfa in two tranches. The transaction consisted of an offering of $500 million 5.250% senior notes due 2024 and $500 million 6.875% senior notes due 2044. The proceeds of the offering were used to fund new energy-related projects and for general corporate purposes, including the repayment or retirement of existing indebtedness. The bond offering was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the Unites States in reliance on Regulation S. The transaction closed on March 25.

Alfa is a large Mexican conglomerate and one of Mexico’s largest public companies based on revenues. It principally conducts its operations through five business units: (i) Alpek (the largest petrochemical company in Mexico and the second largest in Latin America); (ii) Sigma (a leading producer, marketer and distributor of highly-recognized branded foods primarily in Mexico and the United States); (iii) Nemak (the world’s largest independent manufacturer of high-tech aluminum components for the automotive industry in terms of revenue and production capacity); (iv) Alestra (a provider of telecommunication and information technology services in Mexico); and (v) Newpek (a natural gas and hydrocarbons business in Mexico and the United States). Alfa has operations in 18 countries around the world.