Mexico’s Mexichem launches $1 billion of 10-year and 30-year notes

By Rebecca Melvin

New York, Sept. 27 – Mexichem SAB de CV has set terms on $1 billion of notes (expected ratings: Baa3/BBB-/BBB) that will be divided into two equal tranches of 10- and 30-year maturities, according to a market source on Wednesday.

The $500 million 10-year notes will be priced at U.S. Treasuries plus 180 basis points, which was the tight end of talk that was guided down to the Treasuries plus 190 bps area from the low 200s bps initially.

The $500 million 30-year notes will be priced at U.S. Treasuries plus 280 bps, which was guided down to the Treasuries plus 290 bps area from the low 300s bps initially.

Final terms were expected to be fixed late Wednesday, with the new paper released for trading on Thursday.

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.

Mexichem is a chemical company based in Tlalnepantla, Mexico.

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