Mexico’s Alpek begins cash tender offer on 4˝% senior notes due 2022

By Taylor Fox

New York, Feb. 16 – Alpek, SAB de CV began an offer to purchase for cash any and all of its $650 million outstanding 4˝% senior notes due 2022 (Cusips: 020564AAB, PO1703AAB), according to a news release.

Noteholders who tender their notes will receive $1,067.90 per $1,000 of notes plus interest.

The offer is conditioned upon the satisfaction or waiver of certain conditions including the entry by Alpek prior to the expiration time into a purchase agreement in connection with a concurrent offering of dollar-denominated notes by Alpek and the successful closing of the new notes offering and receipt of sufficient funds from the new notes offering, together with available cash on hand and/or borrowings under available lines of credit, to finance the purchase of the notes tendered and accepted under the tender offer.

The offer will expire at 8 a.m. ET on Feb. 23.

Tendered notes may be withdrawn up until the expiration time.

Holders may also tender notes under guaranteed delivery procedures until 5 p.m. ET on Feb. 25.

The settlement date is expected to be Feb. 26.

Global Bondholder Services Corp. (212 430-3774, 866 470-3700; contact@gbsc-usa.com) is the tender agent and information agent.

BofA Securities, Inc. (888 292-0070, 646 855-8988), Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and J.P. Morgan Securities LLC (866 846-2874, 212 834-7279) are the dealer managers.

Alpek is a petrochemical company based in San Pedro Garza Garcia, Mexico.

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