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Nemak Secures 89% of Senior Notes in Debt Restructuring Tender

Monterrey-based automotive supplier Nemak has successfully secured tenders for 89.38% of its outstanding 2.250% senior notes due 2028. Following the expiration of the offer on September 22, the company moves to implement significant structural changes to its debt indenture, clearing the path for a simplified redemption process.

Nemak Secures 89% of Senior Notes in Debt Restructuring Tender
Photo: Bio & News

The company received valid tenders and consents representing €446,911,000 in principal amount, surpassing the threshold required to amend the original indenture. By executing a supplemental indenture, Nemak will remove most restrictive covenants and default provisions tied to the remaining notes. The amendments also drastically reduce notice requirements for future redemptions, shortening the timeframe for both noteholder notification and the delivery of officer certificates from over a month to just three business days.

Payment for the tendered notes is scheduled for September 24, 2026. Participating holders will receive the total consideration of €1,000 per €1,000 principal amount, plus accrued interest. While the company retains the right to issue a redemption notice for any notes remaining after the settlement date, it has not committed to a specific timeline for doing so. Scotia Capital acted as the dealer manager for the transaction, with D.F. King Ltd. serving as the information and tabulation agent.

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