Simpson Thacher represented Braskem Netherlands Finance B.V. (“Braskem Netherlands”), an indirect finance subsidiary of Braskem S.A. (“Braskem”), in connection with the offering of $1.5 billion aggregate principal amount of 4.5% Notes due 2030 and $750 million aggregate principal amount of 5.875% Notes due 2050, which are unconditionally and irrevocably guaranteed by Braskem, pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended. This offering represents the largest single debt issuance by Braskem.
Simpson Thacher also represented Braskem and its indirect finance subsidiaries Braskem Finance Limited (“Braskem Cayman”) and Braskem Netherlands in concurrent abbreviated cash tender offers for: (i) 5.75% Notes due 2021 issued by Braskem Cayman and guaranteed by Braskem, (ii) 5.375% Notes due 2022 issued by Braskem Cayman and guaranteed by Braskem, and (iii) 3.5% Notes due 2023 issued by Braskem Netherlands and guaranteed by Braskem. Braskem used a portion of the net proceeds of the offerings to fund the cash tender offers and intends to use the remainder of the net proceeds to repay other outstanding indebtedness, and for general corporate purposes.
Braskem is the largest producer of thermoplastic resins in the Americas, with 29 plants in Brazil, six plants in the United States, two plants in Germany and four plants in Mexico. Braskem is the only producer of ethylene, polyethylene and polypropylene in Brazil and offers a diversified portfolio of petrochemical and thermoplastic products with a strategic focus on thermoplastic resins.
The Simpson Thacher team included Grenfel S. Calheiros, Kirsten L. Davis, Marcelo B. Lorenzen and Victor Clementino (Capital Markets); and Jonathan Cantor and Brian Mendick (Tax).