Mexichem Completes Equity Raise, Preps Debt

Mexican chemicals and industrial products manufacturer Mexichem has completed a MXP2.25bn capital raise and is preparing to sell bonds locally and abroad. It issued 153.6m new shares – the full amount planned – to existing investors at MXP14.70 each. The controlling shareholders did not exercise all of their allotment, says the firm, resulting in a 7% increase in the company’s public float, to 35%. The deal announced August 3 was completed over a 15-day period. Banamex, Inbursa and GBM were set to sell anything that was not subscribed. Mexichem is meanwhile targeting the end of September for the sale of MXP2.5bn in 2014 domestic bonds, according to a company finance official. The AA minus rated notes will pay interest at a spread to the TIIE benchmark. Proceeds will refinance debt. Inbursa and Arka are managing that sale, the first from a MXP4bn program registered earlier this year. Mexichem should follow that with a debut dollar bond, the official says, likely $300m at 7-10 years maturity. Mexichem has been in discussions with DCM banks, but the official says a mandate has not yet been awarded. Fitch rates Mexichem BBB-.