Nemak Closes Facility

Grupo Alfa auto parts manufacturer Tenedora Nemak has closed a $465m 2018 senior unsecured loan, according to people following the process. The price is tied to a leverage grid, with the borrower paying Libor+150bp at less than 2.0x, 175bp at 2.0x-2.5x, 200bp at 2.5x-3.0x and 225bp at more than 3.0x. BBVA Bancomer, Citi, HSBC Mexico, Banco Santander and Export Development Canada participated in the deal, at $93m each. Citi was the admin agent, and was a joint lead arranger and joint bookrunner along with BBVA, HSBC and Santander. The Mexican is a producer of aluminum engine blocks, cylinder heads and transmission components.