Nemak, S.A.B. de C.V. (“Nemak”) (BMV: NEMAK), a leading provider of innovative lightweighting solutions for the global automotive industry, today announced the placement of a 500 million euro bond issue pursuant to Rule 144A and Regulation S. The notes have a coupon of 3.25% and a maturity period of 7 years. The proceeds from the placement will primarily be used for the repayment of shorter maturity debt.
The bond issue was rated Ba1, BB+, and BB+, one notch below investment grade, with a positive outlook from the three major rating agencies.
“This successful placement is proof of the confidence that investors have in our company and our future prospects. Moreover, it will enable us to improve our debt profile by extending the average life of our debt from 4 to 6 years; better matching the currency mix of our debt and our cash flows; and diversifying our sources of funding,” said Armando Tamez, CEO of Nemak.
