Cleary acts in $500m Alfa consent solicitation
Cleary Gottlieb has advised J.P. Morgan Securities, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, as soliciting agents, in a consent solicitation and CUSIP exchange offer by Alfa in connection with its USD $500m 6.875% senior notes due 2044.
The consent solicitation seeks to amend certain covenants and provisions to clarify that Alfa may spin off its subsidiary Alpek, as well as to permit Sigma Alimentos and certain of its subsidiaries (guarantors) to provide guarantees in respect of all or a portion of Alfa’s outstanding notes.
The consent solicitation began on 10 September, and by the early maturity deadline, Alfa had received consents from holders representing approximately 89.5% of the principal amount of the outstanding notes. Alfa achieved the necessary majority of required consents by the early maturity deadline by implementing the proposed amendments and executing a supplemental indenture.
Alfa is a Mexican conglomerate and one of Mexico’s largest public companies by revenue. Alfa conducts its operations through two business units: Sigma, a leader in the production, marketing and distribution of branded foods, and Alpek, one of the world’s leading producers of petrochemicals and Mexico’s leading producer of polypropylene and polystyrene foam. Previously, Cleary represented the various underwriters in the inaugural 144A/Regulation S bond offerings of Alfa, Sigma and Alpek in the United States.
Cleary corporate team includes partners Jorge Juantorena (pictured left) and Manuel Silva (pictured right), and associate Carla Martini. Partner David Lopez provided advice on structuring and liability management issues. Partner Jason Factor and associate Kathy Zhang are advising on tax matters. All lawyers are based in New York.
