Alpek Targets Low 300s

Mexican petrochemical company Alpek is expecting a yield in the low UST+300bp range for a new $600m, 10-year bond expected as soon as today, according to sources following the process. Following an $800m IPO in April, the Grupo Alfa-controlled polyester and plastics specialist plans to issue the senior unsecured debt, which comes with guarantees from Grupo Petrotemex and its main subsidiaries, as it seeks to address existing liabilities. The deal is expected to be comped mainly against peer Mexichem’s $750m 2022 bonds (Ba1+/BBB minus) issued in September, according to bankers following the process. Citi, Goldman Sachs, HSBC and JPMorgan are managing the BBB minus/Baa3 transaction.