Nemak’s €500 Million SLB Offering
July 7, 2021
Cleary Gottlieb is representing Banco Bilbao Vizcaya Argentaria S.A., BNP Paribas, HSBC Bank plc, Merrill Lynch International, Citigroup Global Markets Limited, J.P. Morgan Securities plc, and Banco Santander S.A., as initial purchasers, in a global bond offering by Nemak S.A.B. de C.V. (Nemak) of its €500 million 2.25% senior notes due 2028.
In connection with the bond issuance, Nemak has adopted and published its sustainability-linked bond framework. The sustainability-linked bond framework includes certain sustainability performance targets, which reinforce Nemak’s overall strategic priorities.
The offering is being conducted as a private placement in the United States under Rule 144A and an offshore offering in reliance on Regulation S. The transaction priced on July 7, 2021, and is expected to close on July 20, 2021. Nemak will use the net proceeds of the offering to fund a concurrent tender offer and consent solicitation with respect to its €500 million 3.25% senior notes due 2024 and the remainder, if any, for debt repayment, including the redemption of any 2024 notes not validly tendered and accepted in the tender offer and consent solicitation. Cleary is representing the dealer managers and solicitation agents in the tender offer and consent solicitation.
The offering and liability management transaction are part of Nemak’s overall strategy to refinance its outstanding debt to improve its cost of capital and extend its maturity profile. As part of this strategy, Nemak recently completed an offering of $500 million 3.625% senior notes due 2031, the proceeds of which will be used to redeem in full Nemak’s outstanding $500 million 4.75% senior notes due 2025. Cleary also represented the initial purchasers in the U.S. dollar offering.
Nemak is a leading global provider of innovative light weighting solutions for the global automotive industry in terms of revenue and production capacity, specializing in the development and manufacturing of high-tech, complex aluminum powertrain, e-mobility, and structural components.