Unigel Completes US$420 Million Unsecured Bond Offering and Concurrent Cash Tender Offer and Consent Solicitation
10.03.19
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Simpson Thacher represented Unigel Luxembourg S.A. (“Unigel”), a wholly owned financing subsidiary of Unigel Participações S.A., in connection with its offering of US$420 million aggregate principal amount of 8.75% Senior Unsecured Notes due 2026 pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended. Unigel intends to use substantially all of the net proceeds of the offering to repay existing indebtedness (including Cash Tender Offer and Consent Solicitation described below), with the remainder for general corporate purposes.
Simpson Thacher also represented Unigel in its successful Cash Tender Offer and Consent Solicitation. Approximately US$176 million in aggregate principal amount of its outstanding US$200 million 10.5% Senior Secured Notes due 2024 was tendered and validly purchased by Unigel. The Cash Tender Offer and Consent Solicitation will expire on October 8, 2019.
Unigel is the largest acrylics and styrenics company in Latin America, in terms of nominal production capacity, and operates several chemical plants in Brazil and Mexico. Unigel was founded in 1966, when it started production of thermoplastic resins with proprietary technology. It grew over the past decades to become a vertically integrated chemicals company that produces a diversified portfolio of chemical, petrochemical, plastic products and fertilizers from multiple facilities in Brazil and Mexico.
The Simpson Thacher team for the transaction included Grenfel S. Calheiros, Kirsten L. Davis, Paulo Fernando Cardoso and Siddharth Fresa (Capital Markets – New York and São Paulo); and Jonathan E. Cantor (Tax).