By Rebecca Melvin
New York, Sept. 28 – Mexichem SAB de CV priced $1 billion of senior notes divided into two equal tranches of 10- and 30-year maturities (expected ratings: Baa3/BBB-/BBB), according to a market source.
The $500 million 4% notes due 2027 priced at 99.186 to yield 4.1%, or a yield spread of 180 basis points over Treasuries.
That pricing was where the deal launched, 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 5½% notes due 2048 priced at 97.874 for an initial yield of 5.648%, or Treasuries plus 280 bps, which was guided down to the Treasuries plus 290 bps area from the low 300s bps initially.
The Rule 144A and Regulation S notes have a change-of-control put at 101%. Settlement is slated for Oct. 4.
Proceeds are earmarked to repay debt, to finance prospective strategic acquisitions including the acquisition of Netafim and for other general corporate purposes.
BBVA Securities, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and MUFG are the bookrunners.
A listing on the Luxembourg Stock Exchange – Euro MTF is planned.
Mexichem is a chemical company based in Tlalnepantla, Mexico.
| Issuer: | Mexichem SAB de CV
|
| Description: | Senior notes
|
| Total amount: | $1 billion
|
| Bookrunners: | BBVA Securities, J. P. Morgan Securities LLC, Morgan Stanley & Co. LLC and MUFG
|
| Co-managers: | Leumi Partners Underwriters Ltd. and Poalim IBI – Underwriting and Issuing Ltd.
|
| Change-of-control put: | 101%
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 4, 2027
|
| Coupon: | 4%
|
| Price: | 99.186
|
| Yield: | 4.1%
|
| Spread: | 180 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 30 bps until three months before maturity, then at par
|
| Price talk: | Guided to 190 bps over Treasuries from low 200s bps over Treasuries
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2048
|
| Coupon: | 5½%
|
| Price: | 97.874
|
| Yield: | 5.648%
|
| Spread: | 280 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 45 bps until six months before maturity, then at par
|
| Price talk: | Guided to 290 bps over Treasuries from low 300s bps over Treasuries
|
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