ALPEK B de C : successfully issues bond for U.S. $600 million
February 19, 2021 at 08:58 am EST
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Alpek, S.A.B. de C.V. ('Alpek') announced today the successful issuance of a U.S. $600 million bond in the international market, pursuant to Rule 144A and Regulation S.
The notes have a 3.25% annual coupon, setting a record as the lowest in our history, and with a maturity period of 10 years. The net proceeds from the issuance will be used to pay the consideration including accrued and unpaid interest, on the concurrent tender offer in connection with Alpek's 2022 bond, with the remainder used for debt repayment and general corporate purposes. 'We consider that Alpek'srecord volume amid the COVID-19 pandemic and strong cash flow generation, among other factors, all contributed to this successful transaction being oversubscribed over 9 times,' stated Jose de Jesus Valdez, Alpek's CEO. 'We enjoyed ample participation from high-quality investor accounts with ample geographically diversity, as 54% of orders came from North America, 34% from Europe, and 5% from Asia. Moreover, we are also very proud that our commitment and recent progress related to ESG was rewarded through strong participation from ESG-dedicated funds.'
About Alpek: Alpek is a leading petrochemical company operating two business segments: 'Polyester' (PTA, PET, rPET, and polyester fibers), and 'Plastics & Chemicals' (polypropylene, expandable styrenics, caprolactam, and other specialty & industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, one of the largest rPET producers in the Americas, the third largest expandable polystyrene manufacturer worldwide, and the only producer of polypropylene and caprolactam in Mexico. In 2020, Alpek reported revenues of U.S. $5.3 billion and Comparable EBITDA excl. RMCF of U.S. $601 million. The Company operates 31 plants in the United States, Mexico, Canada, Brazil, Argentina, Chile and the United Kingdom, and employs more than 6,000 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
Alpek SAB de CV is a Mexico-based company engaged in the chemicals sector. The Company's activities are divided into two business segments: Polyester and Plastics & Chemicals. The Polyester division focuses on the manufacture and distribution of purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fiber. The Plastics & Chemicals division is responsible for the production of polypropylene (PP), expandable polystyrene (EPS), caprolactam (CPL), ammonium sulfate, as well as specialty and industrial chemicals, such as surfactants, ethoxilates, glycoethers and desemulsionates. The Company's products are used in a range of industries, including consumer goods, food and beverages, automotive, construction, agriculture, oil and gas, as well as pharmaceuticals. It operates a number of production plants in the Americas. The Company is controlled by Alfa SAB de CV.
ALPEK, S.A.B. DE C.V. 
