Unigel Completes US$110 Million Reopening of Bond Offering
01.25.21
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Simpson Thacher represented Unigel Luxembourg S.A. (“Unigel”), a wholly owned financing subsidiary of Unigel Participações S.A., in connection with its offering of US$110 million aggregate principal amount of additional 8.75% Senior Notes due 2026. The additional notes constituted a reopening of the US$420 million aggregate principal amount of notes initially issued on October 1, 2019, increasing the aggregate principal amount of the series to US$530 million. The offering was conducted in reliance upon Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended. Unigel intends to use the net proceeds of the offering to repay certain outstanding short-term debt and its 2024 secured bond make-whole, as well as for general corporate purposes.
Unigel is the leading intermediate chemicals company in Latin America, producing styrenics and acrylics, and expects to be the largest producer of nitrogen fertilizers (ammonia and urea) in Brazil in 2021. Unigel was founded in 1966, when it started production of thermoplastic resins with proprietary technology. It grew over the past decades to become a vertically integrated chemicals company that produces a diversified portfolio of chemical, petrochemical, plastic products and fertilizers from multiple facilities in Brazil and Mexico.
The Simpson Thacher team for the transaction was led by Grenfel S. Calheiros and Paulo Fernando Cardoso and included Marcelo Lorenzen and Raissa Fini (Capital Markets – New York and São Paulo); and Jonathan E. Cantor and Brian Mendick (Tax – New York).