Alpek’s $600 Million Bond Offering

February 18, 2021

Cleary Gottlieb is representing BofA Securities, Citigroup, J.P. Morgan, BBVA, BNP Paribas, HSBC, MUFG, and SMBC Nikko, as initial purchasers, in a bond offering of $600 million 3.25% senior notes due 2031 to be issued by Alpek S.A.B. de C.V. (Alpek), which will be guaranteed by several of its subsidiaries located in Mexico and the United States.

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 February 18, 2021, and is expected to close on February 25, 2021. Alpek will use the proceeds of the offering to fund a concurrent tender offer for any and all of its 4.5% senior notes due 2022 and the remainder, if any, for debt repayment or reduction and general corporate purposes. Cleary is also representing the dealer managers in the tender offer.

Alpek, a subsidiary of Alfa (a large Mexican conglomerate) and one of the largest petrochemical companies in Mexico and Latin America, is involved in the production, marketing, and sale of petrochemical products. Its products serve the food and beverage packaging, textile and industrial filaments, consumer goods, automotive, construction, agriculture, oil industry, and pharmaceutical end markets.