The Firm represented Banc of America Securities LLC and J.P. Morgan Securities Inc., as initial purchasers, in connection with a high-yield debt offering of $200 million of 9.50% Senior Notes due 2014 by Grupo Petrotemex, S.A. de C.V., a Mexican company. The offering was conducted in reliance upon Rule 144A and Regulation S under the Securities Act of 1933. The offering represented Petrotemex’s first offering in the international capital markets.
Petrotemex will use the net proceeds from the offering to repay outstanding debt.
Petrotemex is a leading petrochemical company in the NAFTA region, specializing in polyester-related raw materials and products that are used to produce plastic bottles and containers as well as carpets and apparel. Petrotemex produces and sells purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester staple fiber. Petrotemex is a subsidiary of Alfa, S.A.B. de C.V., a major Mexican conglomerate.
The Simpson Thacher team for the debt offering included, among others, Glenn M. Reiter, Juan Francisco Mendez, Kirsten L. Davis and Juan Naveira (Capital Markets), Jonathan Cantor (Tax), and Jeanne Annarumma (Executive Compensation and Employee Benefits).