WASHINGTON DC, August 26, 2011 – Mexican automotive parts manufacturer Tenedora Nemak, S.A. de C.V. has refinanced approximately $1 billion in existing debt by executing a $1.145 billion syndicated loan facility with banks around the world. The international law firm Milbank, Tweed, Hadley & McCloy LLP, represented BBVA Securities, Inc., Citigroup Global Markets, Inc., HSBC Securities (USA) Inc. and Santander Investment Securities Inc. in their role as the Joint Lead Arrangers and Bookrunners for the refinancing.
Nemak, headquartered in Monterrey, Mexico, is the largest aluminum automotive component foundry in the world, manufacturing and distributing aluminum cylinder heads, engine blocks, and transmission parts used by General Motors, Ford, Chrysler, BMW, Fiat and other car makers to build internal combustion engines. Nemak, which is a subsidiary of Alfa, S.A.B. de C.V. has 28 manufacturing facilities located in 13 different countries in Asia, Europe and North & South America, and more than 18,000 employees worldwide.
The closing of the transaction represents the culmination of months of negotiations, involving over 20 financial institutions and local counsel in many different jurisdictions, reflecting Nemak’s worldwide operations. Milbank acted as New York counsel to the Joint Lead Arrangers, and was responsible for the drafting and negotiation of all of the key financing documents and coordinating with the various local counsels.
Glenn S. Gerstell, the Milbank partner who led the firm’s deal team, noted, “This transaction represents another high-point in our long-standing relationship working ‘across-the-table’ from Nemak. We have been delighted to see Nemak continue to grow and prosper, despite the turbulent automotive markets over the course of the last several years. Milbank was extremely well-positioned to handle the challenges presented by this deal because of our extensive experience representing financial institutions in multi-jurisdictional financing transactions, particularly in Mexico. It is a testament to the hard work and dedication of many individuals on all sides of the transaction that it was completed in such an efficient and effective manner.”
Mr. Gerstell is the managing partner of the Washington, DC office and has been active in cross-border refinancings in Latin America, Asia and the US. In addition to Mr. Gerstell, the Milbank team representing the Joint Lead Arrangers included senior associate Gavin W. McKeon and associate Frederick S. Cristman.
The Joint Lead Arrangers were advised by Ritch Mueller S.C. as to Mexican law.
Nemak was advised by Cleary Gottlieb Steen & Hamilton LLP as to New York and German law, Stewart McKelvey Sterling Scales as to Nova Scotia law, Holland Van Gijzen Advocaten en Notarissen LLP as to Dutch law, and the Faludi Wolf Theiss Law Firm as to Hungarian law.
Nemak and the Joint Lead Arrangers were jointly advised by Alae Abogados as to Spanish law, Waller Lansden Dortch & Davis, LLC as to Tennessee law, and Leoni Siqueira Advogados as to Brazilian law. Bernstein, Shur, Sawyer and Nelson acted as special counsel to Citibank as global collateral agent.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm providing innovative legal solutions to clients throughout the world for more than 140 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout our global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectoral expertise and a strong tradition of innovation and client service.