Grupo IDESA’s Offer to Exchange Existing Secured Notes for New Secured Notes and Cash

Cleary Gottlieb is representing Grupo IDESA, S.A. de C.V. (Grupo IDESA) in an exchange offer and consent solicitation for any and all of its outstanding 9.375% senior secured notes due 2026 (the existing secured notes) for new 6.5% senior secured notes due 2028 (the new secured notes).

Grupo IDESA has also offered to purchase up to $100 million of the existing secured notes for $0.775 in cash per $1 of notes tendered. The offering of the new secured notes was conducted as a private placement under the exemption from registration provided by Section 4(a)(2) of the U.S. Securities Act of 1933 and outside of the United States in reliance on Regulation S. The exchange and tender offer and consent solicitation is being conducted in connection with the agreement by lenders to capitalize a term loan previously granted to Grupo IDESA and its affiliates which substantially deleveraged Grupo IDESA and allowed Grupo IDESA to offer previously encumbered collateral in the exchange offer.

The transaction launched on March 28, 2023, and as of 5:00 p.m., New York City time, on April 11, 2023 (the early tender date) approximately $286 million in aggregate principal amount of the existing secured notes, representing approximately 92% of the outstanding existing secured notes, were validly tendered. Additionally, the minimum tender condition was satisfied as of the early tender date, which required at least 85% of the aggregate outstanding principal amount of the existing secured notes to be tendered. The offers are expected to expire on April 25, 2023, unless extended by Grupo IDESA.

Grupo IDESA has more than 65 years of experience in the petrochemical industry in Mexico and produces compounds that are used as raw materials in the manufacture of a vast range of products such as food and beverage packaging, clothing and footwear, construction materials, automotive industry liquids, and toys, among others. Grupo IDESA is also the holder of a 25% stake in the Braskem-IDESA joint venture, which operates one of the largest ethylene crackers in the region.