Simpson Thacher represented Braskem Netherlands Finance B.V. (“Braskem Netherlands Finance”), a finance subsidiary of Braskem S.A. (“Braskem”), in connection with the issue and sale of US$850,000,000 aggregate principal amount of Braskem Netherlands Finance’s 8.000% Senior Notes due 2034 (the “Notes”).
Citigroup Global Markets Inc., Itau BBA USA Securities, Inc., Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, and Standard Chartered Bank AG acted as initial purchasers for the offering. The Notes are guaranteed by Braskem, the parent company of Braskem Netherlands Finance.
The Notes were offered to qualified institutional buyers in the United States under Rule 144A and to non-U.S. persons in reliance on Regulation S. Braskem intends to use the net proceeds from the offering for the repayment of debt, which may include the repurchase of Braskem Netherlands Finance’s outstanding Subordinated Resettable Fixed Rate Notes due 2081 (the “2081 Notes”).
Simpson Thacher is also representing Braskem and Braskem Netherlands Finance in a concurrent cash tender offer for the 2081 Notes issued by Braskem Netherlands Finance and guaranteed by Braskem.
Braskem is the largest producer of plastics in the Americas based on the annual production capacity of its plants, with operations in Brazil, Mexico, the United States and Europe. Through fossil, renewable, and recycled raw materials, Braskem offers a broad portfolio of chemicals and plastics used and transformed by its customers in more than 70 countries into applications such as food packaging, household furniture, industrial and automotive components, paints, and coatings, among others. Braskem is also the global leader in green polyethylene production and benefits from its industrial footprint in Brazil, which is one of the largest ethanol producers in the world.
The Simpson Thacher team included Grenfel S. Calheiros and Marcelo B. Lorenzen (Capital Markets); and Jonathan Cantor and Benjamin Bressler (Tax).