Ritch Mueller and Cleary help in Banorte offering
Ritch Mueller and Cleary Gottlieb have advised the initial purchasers on the USD $1.5 billion Basel III equity offering by Banco Mercantil del Norte, Institución de Banca Múltiple and Grupo Financiero Banorte (Banorte).
The perpetual, callable, subordinated, non-preferred, non-cumulative Tier 1 capital notes transaction consists of USD $750 million in 6.5-year 8.375% notes and USD $750 million in 10.5-year 8.750% perpetual notes.
This is Banorte’s fifth and sixth Tier 1 issuance since the implementation of Basel III requirements in Mexico.
The transaction was priced on November 13 and completed on November 20. White & Case acted as advisor to Banorte.
Goldman Sachs, Barclays Capital, Morgan Stanley and MUFG Securities Americas acted as initial purchasers and placement intermediaries.
Banorte is the largest bank in Mexico not controlled by or affiliated with a non-Mexican financial institution in terms of total assets, deposits and stockholders’ equity. The bank offers a wide range of financial services, primarily in Mexico, in the areas of commercial and retail banking, long-term savings and brokerage services.
Ritch Mueller’s team was led by partner Luis A. Nicolau Gutiérrez (pictured left), with support from attorneys Juan Carlos Rodríguez Hernández, Luis Miguel Posadas Yáñez and Darío Hernández Guzmán.
Cleary’s team included partners Jorge Juantorena (pictured centre) and Jonathan Mendes de Oliveira (pictured right), law clerk Jose Juan Vazquez, and international lawyer Maria Echeverria. Partner Matthew Brigham and associates Samuel Kramer and Mingyu Tang advised on tax matters. Senior attorney James Corsiglia advised on sanction-related matters. Jonathan Mendes de Oliveira is based in Sao Paulo, while the rest of lawyers are based in New York.
