US trio lands roles on $1.15bn Mexichem bond offering

Cleary Gottlieb Steen & Hamilton, Davis Polk & Wardwell, Ritch Mueller and White & Case have all scooped roles as Mexichem issues a $1.15bn (£700m) two-tranche bond offering.

The deal sees the Latin American chemicals conglomerate issue $750m (£464m) in 10-year paper and $400m (£248m) in 30-year paper and have together reportedly attracted an estimated $17.5bn (£10.8bn) in investor bids.

The deal closed on 19 September and the proceeds will enable Mexichem to pay off existing debt. It has already prompted the company to buy back $350m (£217m) worth of senior notes due in 2019.

Davis Polk and White & Case acted for Mexichem on both the bond offering and the tender offer.

Davis Polk corporate partner Manuel Garciadiaz, who splits his time between the firm’s offices in New York and São Paulo, led the team, alongside tax partner Michael Farber, tax associate Yuliya Epifantseva and Mexican-born international associate Gabriel Sarmiento in New York, as well as corporate associates Drew Glover and Andrew Lyle in São Paulo.

White & Case capital markets partner John Vetterli, who splits his time between New York and São Paulo, and Miami-based corporate and project finance partner Carlos Viana led the team, with the support of Miami-based associate Elizabeth Gonzalez and associates Bibiana James and Alana Paul in São Paulo.

Cleary and Mexico’s Ritch Mueller acted as counsel to Citigroup, HSBC, JP Morgan and Morgan Stanley in their role as bookrunners for the bond offerings and as deal managers on the tender offer.

The Cleary team was led by capital markets partner Jorge Juantorena, associate Alfonso Jimenez and Mexican-born international lawyer Ana Sofia Rios Artigas in New York.

Mexico City-based corporate partner Luis Nicolau and associate María Hyde were the key lawyers involved from Ritch Mueller.

Background to this deal:

Davis Polk is a longstanding adviser to Mexichem and advised the Mexican chemical giant last year on a $1bn revolving credit facility. Davis Polk international associate Gabriel Sarmiento is also currently on secondment to the firm from Mexichem’s in-house legal department.

White & Case has acted for Mexichem on two of its recent acquisitions – a $300m acquisition of the AlphaGary plastic compounding business division from Rockwood Holdings in 2011 and on the $350m acquisition of UK-based INEOS Holdings’ fluorochemical business division in 2010.

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