Mexichem s 1 Billion Offering

October 4, 2017

Cleary Gottlieb represented Mexichem as issuer in its investment-grade global bond offering of $500 million 4 percent senior notes due 2027 and $500 million 5.5 percent senior notes due 2048, guaranteed by several subsidiaries of Mexichem located in Mexico, the United States, the United Kingdom, Colombia, Ecuador and Brazil.

The proceeds of the offering will be used to repay its indebtedness, to finance its prospective strategic acquisitions, including the acquisition of 80 percent of the voting shares of capital stock of Netafim, Ltd., a global leader in smart irrigation solutions, with any remaining proceeds used for general corporate purposes. The bond offering was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the United States in reliance on Regulation S. The transaction priced on September 27, 2017, and closed on October 4, 2017.

BBVA, J.P. Morgan, Morgan Stanley and MUFG acted as joint bookrunners, and Leumi Partners Underwriters Ltd. and Poalim IBI - Underwriting and Issuing Ltd. acted as co-managers for the offering.

Mexichem is a leading supplier of products and solutions in multiple sectors, from petrochemical to construction, infrastructure, agricultural, health, transportation, telecommunications and energy, among others, through a group of companies located in the American and European continents, as well as in some Asian and African countries. They are one of the leading producers of plastic pipes and fittings worldwide and one of the leading chemical and petrochemical companies in Latin America. Cleary has participated in multiple prior debt and equity capital markets transactions by Mexichem, including a $750 million global bond offering in 2014.