Milbank LLP advised Morgan Stanley & Co. LLC, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and Itau BBA USA Securities, Inc., as the initial purchasers, and Morgan Stanley Senior Funding, Inc., Credit Agricole Corporate and Investment Bank, Deutsche Bank AG, London Branch and Itaú Unibanco S.A., Miami Branch as lenders, in the landmark US$1.35 billion bank/bond refinancing by Braskem Idesa, a leading Mexican petrochemical company. The transaction consisted of two parts, a $1.2 billion high-yield offering sustainability-linked of 144A/Reg S 6.990% senior secured notes due 2032 and a $150 million senior secured syndicated term loan facility. The proceeds of the transaction will be used to refinance all of Braskem Idesa’s existing project finance indebtedness in order to provide more flexibility for future expansion of Braskem Idesa’s operations. The transaction closed on October 20, 2021.
The Milbank deal team was led by Global Capital Markets partners Carlos Albarracín and Tobias Stirnberg, along with special counsel Jeffrey Susskind and associates Lyndon Plothow, Ana Bueno, Marcela Barba, Marina Carvalho Rodriguez, Severine Losembe and Jeeseon Ahn.
Mr. Albarracín said: “Milbank is pleased to have advised the initial purchasers and lenders in connection with this landmark transaction with Braskem Idesa, which reflects the continued commitment of international bond investors to Mexico. We hope this paves the way for similar offerings in Mexico.”
