Nemak in Debut Global Bond Offering

February 28, 2013

Cleary Gottlieb represented Citigroup Global Markets, Credit Suisse and Morgan Stanley as initial purchasers in the debut global bond offering by Mexican autoparts company Nemak. The transaction consisted of an offering of $500 million 5.500% senior notes due 2023 issued and sold by Nemak and guaranteed by several of Nemak’s subsidiaries located in Canada, Germany, Hungary, Mexico, and the United States. The proceeds of the offering were used to reduce Nemak’s outstanding long-term debt. The notes were offered for sale in the United States pursuant to Rule 144A and abroad pursuant to Reg S. The transaction closed on February 28.

Nemak, a subsidiary of Alfa, a large Mexican conglomerate, is the world’s largest independent manufacturer of high-tech aluminum powertrain components for the automotive industry. Nemak’s main products include cylinder heads, engine blocks, transmission and other components, which it provides to over 50 manufacturing groups, including BMW, Daimler, Fiat-Chrysler, Ford and General Motors. Nemak has operations in Canada, China, Europe, India, Mexico, South America and the United States.