Grupo IDESA in $277 Million Exchange Offer and Consent Solicitation

May 22, 2020

Cleary represented Grupo IDESA S.A. de C.V. (Grupo IDESA) in an exchange offer and consent solicitation for its outstanding 7.875% senior notes due 2020 for 9.375% new secured notes due 2026.

The offering of the new secured notes was conducted as a private placement under the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933 and outside of the United States in reliance on Regulation S.

About $274.92 million of the existing unsecured notes (or approximately 91.64% of the outstanding principal amount thereof) were tendered in the offer and solicitation, and about $277.67 million of new secured notes were issued at settlement.

The transaction launched on March 23, 2020, and settlement occurred on May 22, 2020. The transaction is the first exchange offer launched in Latin America during the global COVID-19 outbreak and involved a complex negotiation with multiple counterparties and stakeholders, including bondholders, term loan lenders, shareholders, and joint ventures.

Grupo IDESA has more than 65 years of experience in the petrochemical industry in Mexico and produces compounds that are used as raw materials in the manufacture of a vast range of products such as food and beverage packaging, clothing and footwear, construction materials, automotive industry liquids, and toys, among others.