Mexichem talks $1 billion of 10-year and 30-year notes

By Rebecca Melvin

New York, Sept. 27 – Mexico’s Mexichem SAB de CV plans to price $1 billion of 10- and 30-year notes (expected ratings: Baa3/BBB-/BBB) following a roadshow that wrapped up on Tuesday, according to a market source.

Initial price talk on the 2027 notes is for a yield spread of U.S. Treasuries plus low 200s basis points.

The initial price talk on the notes that mature January 2048 is for a yield spread of Treasuries plus low 300s bps.

The notes have a change-of-control put at 101%. Settlement is slated for Oct. 4, and a listing on the Luxembourg Stock Exchange is planned.

Proceeds are earmarked to repay debt, to finance prospective strategic acquisitions and for other general corporate purposes.

BBVA, JPMorgan, Morgan Stanley and MUFG are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow began in Mexico on Sept. 20 and included meetings in Los Angeles, Boston, Santiago and London.

Mexichem is a chemical company based in Tlalnepantla, Mexico.

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