Monterrey, Mexico. January 11, 2018. - ALFA, S.A.B. de C.V. (ALFA), announced today that its subsidiary Nemak, S.A.B. de C.V. ('Nemak') (BMV: NEMAK), a leading provider of innovative lightweighting solutions for the global automotive industry, announced the placement of a US$500 million bond issue in the international debt markets pursuant to Rule 144A and Regulation S. The notes have a coupon of 4.75% and a maturity period of 7 years, representing the all-time lowest coupon for a BB+ rated issuance from a Latin American company. The proceeds from the placement will be used to refinance the company's existing U.S. $500 million 5.5% notes due 2023.
The new bond issue was rated Ba1, BB+, and BB+, one notch below investment grade, with a positive outlook from two of the three main rating agencies and a stable outlook from the other agency.
'We are pleased with the success of this bond issue, a clear sign of investor confidence in our company. This refinancing will enable us to lower our financial costs and to extend the average life of our debt from 5.2 to 5.8 years, thereby reinforcing our financial position,' said Armando Tamez, CEO of Nemak.
About NEMAK
Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain and body structure applications. The company employs more than 21,000 people at 38 facilities worldwide. In 2016, it generated revenues of US$4.3 billion. For more information about Nemak, visit www.nemak.com
Luis Ochoa Reyes
Vice President, Investor Relations
ALFA, S.A.B. de C.V.
+52 (81) 8748-2521
lochoa@alfa.com.mx
Alfa SAB de CV published this content on 11 January 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 January 2018 00:19:08 UTC.
Original documenthttp://www.alfa.com.mx/SP/press.htm?md=enero11&y=2018
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Alfa SAB de CV is a Mexico-based holding company, which manages a portfolio of diversified subsidiaries. Its portfolio includes Sigma, a producer, marketer and distributor of foods under a number of brands in Mexico, the United States, Europe and Latin America; Alpek, a producer of polyester, namely purified terephthalic acid (PTA), polyethylene terephthalate (PET) and fibers, and offers to the Mexican market expandable polystyrene (EPS) and caprolactam, among others; Nemak, a provider of lightweighting solutions for automotive industry and specialized in the development and manufacturing of aluminum components for powertrain and body structure; Axtel, a provider of information technology and communication services for enterprises, government and residential markets through its Alestra and Axtel brands, and Newpek, which is an oil and gas exploration and production company with operations in Mexico and the United States.