Alpek, S.A.B. de C.V. Secures $710 Million Syndicated Financing

April 04, 2018

New York -- Paul Hastings LLP, a leading global law firm, announced that it represented leading Mexican petrochemical company Alpek, S.A.B. de C.V., as borrower, in a $710 million senior unsecured term loan facility with The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citigroup Global Markets Inc., HSBC Mexico, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC and JPMorgan Chase Bank, N.A., as joint lead arrangers. The dollar denominated facility will be syndicated in the coming weeks.
The proceeds will be used to finance (i) the purchase, through a joint venture, of certain assets of M&G Resins USA, LLC, a Delaware limited liability company and its affiliates, in a case in the United States Bankruptcy Court for the District of Delaware, which purchase has just been approved by court order, (ii) the purchase, by subsidiaries of Alpek from Petrobras, of 100% of the equity of Companhia Petroquimica de Pernambuco and Companhia Integrada Têxtil de Pernambuco, each of which is a sociedade por ações formed under the Laws of Brazil and will become a wholly-owned subsidiary of Alpek, and (iii) the repayment of certain indebtedness.

Alpek is a leading producer of PTA and PET worldwide, the largest expandable polystyrene manufacturer in America, and the only producer of caprolactam in Mexico. Alpek also operates one of the largest polypropylene facilities in North America.

Alpek’s parent company Alfa, S.A.B. de C.V., is one of the largest conglomerates in Latin America.

Latin America partners Michael Fitzgerald and Joy Gallup led the Paul Hastings team, which also included partner David Makso, of counsel Pedro Reyes and international associate Laura Dinora Martinez.

At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.