Ne Emak, S.A.B. D De C.V.
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LISTING PARTICULARS US$500,000,000 NEMAK, S.A.B. DE C.V. 4.750% Senior Notes due 2025 We are offering US$500,000,000 aggregate principal amount of our 4.750%% Senior Notes due 2025 (the “notes”). We will pay interest on the notes semi-annually in arrears on January 23 and July 23 of each year, begginning on July 23, 2018. The notes will mature on January 23, 2025. We may redeem the notes, in whole or in part, at any time on or after January 23, 2021, at the applicable redemption prices set forth in this offering memorandum, plus accrued and unpaid interest. Prior to January 23, 2021, we may also redeem the notes, in whole oor in part, at a redemption price based on a “make-whole” premium plus accrued and unpaid interest. In addition, at any time on or prior to January 23, 2021, we may redeem up to 35% of the notes at a redemption price equal to 104.750% of their prrincipal amount, plus accrued annd unpaid interest, using the proceeds of certain equity offerings. In addition, in the event of certain changes in the Mexican withholding tax treatment relating to payments of interest on the notes, we may redeem the notes, in whole but not in part, at 100% of their principal amount, plus accrued and unpaid interest. There is no sinking fund for the notes. If a change of control as described in this offering memorandum occurs with respect to us, unless we have exercised our option to redeem the notes, each holder of the notes will have the right to require us to repurchase all or any part of that holder’s notes at 101% of the aggregate principal amount of notes repurchased plus accrued and unpaid interest and additional amounts, if any. The notes will be unconditionally guaranteed by certain of our subsidiaries. The notes and the subsidiary guarantees will be our and our subsidiary guarantors’ respective senior unsecured obligations (subject to certain statutory preferences under Mexican law, such as tax, social security and labor obligations), and will rank equally in right of payment to all of our and our subsidiary guarantors’ respective existing and future senior unsecured indebtedness. The notes and the subsidiary guarantees will rank effectively junior in right of payment to any of our and our subsidiary guarantors’ respective existing and future secured indebtednesss to the extent of the value of the assets securing such indebtedness and will be structurally junior to all liabilities and guarantees of our non-guarantor subsidiaries. No public market currently exists for the notes. These listing particulars have been approved by the Irish Stock Exchange. Application has been made to the Irish Stock Exchange to admit the notes to listing on the Official List of the Irish Stock Exchange and to trading on the Global Exchange Market. Investing in the notes involves risks. See “Risk Factors” beginning on page 16. Issue Price: 100.000% plus accrued interest, if any, from Januaarry 23, 2018. THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE NATIONAL SECURITIES REGISTRY (REGISTRO NACIONAL DE VALORES, OR “RNV”) MAINTAINED BY THE MEXICAN NATIONAL BANKING AND SECURITIES COMMISSION (COMISIÓN NACIONAL BANCARIA Y DE VALORES, OR “CNBV”), AND MAY NOT BE OFFERED OR SOLD PUBLICLY IN MEXICO. WE WILL NOTIFY THE CNBV OF THE TERMS AND CONDITIONS OF THE OFFERING OF THE NOTES OUTSIDE OF MEXICO, TO COMPLY WITH A LEGAL REQUIREMENT AND FOR INFORMATIONAL PURPOSES ONLY. THE DELIVERY OF SUCH NOTICE TO, AND THE RECEIPT THEREOF BY, THE CNBV IS NOT A REQUIREMENT FOR THE VALIDITY OF THE NOTES AND DOES NOT CONSTITUTE OR IMPLY ANY CERTIFICATION AS TO THE INVESTMENT QUALITY OF THE NOTES, OUR SOLVENCY, LIQUIDITY OR CREDIT QUALITY OR THE ACCURACY OR COMPLETENESS OF THE INFORRMMATION SET FORTH HEREIN. THIS OFFERING MEMORANDUM IS SOLELY OUR RESPONSIBILITY AND HAS NOT BEEN REVIEWED OR AUTHORIZED BY THE CNBV. THE NOTES MAY BE OFFERED TO INSTITUTIONAL OR QUALIFIED INVESTORS IN MEXICO, PURSUANT TO THE PRIVATE PLACEMENT EXEMPTION SET FORTH IN ARTICLE 8 OF THE MEXICAAN SECURITIES MARKET LAW (LEY DEEL MERCADO DE VALORES) AND REGULATIONS THEREUNDER. The notes have not been, and will not be, registered under the U.S. Secuurities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act (“Regulation S”)) except in transactions exempt from, or not subject to, the registration requirements of the Securities Act. Accordingly, we are offering the notes to qualified instituutional buyers in reliance on Rule 144A under the Securities Act (“Rule 144A”) and outside the United States to non-U.S. persons in reliance on Regulation S. You are hereby notified that sellers of the notes may be relying on the exemption from the provisionns of Section 5 of the Securities Act provided by Rule 144A. See “Transfer Restrictions” for additional information about eligible offerees and transfer restrictions. The notes will be represented by global notes in registered form. Delivery of the notes was made to investors in book-entry fform through the facilities of The Depository Trust Company (“DTC”) for the accounts of its direct and indirect participants, including Euroclear Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme, Luxembourg (“Clearstream”), on or about January 23, 2018. Joint Book-Runners BNP PARIBAS J.P. Morgan Morgan Stanley The date of this document is March 15, 2018. TABLE OF CONTENTS Page Notice to Investors ......................................................................................................................................................... ii Enforcement of Civil Liabilities .................................................................................................................................. iii Available Information .................................................................................................................................................. iii Forward-Looking Statements ....................................................................................................................................... iv Certain Definitions ...................................................................................................................................................... vii Presentation of Financial and Certain Other Information ............................................................................................. xi Summary........................................................................................................................................................................ 1 The Offering .................................................................................................................................................................. 9 Summary Historical Financial Data and Other Information ........................................................................................ 13 Risk Factors ................................................................................................................................................................. 16 Exchange Rates ........................................................................................................................................................... 35 Use of Proceeds ........................................................................................................................................................... 36 Capitalization ............................................................................................................................................................... 37 Selected Historical Financial Data and Other Information .......................................................................................... 38 Management’s Discussion and Analysis of Financial Condition and Results of Operations ...................................... 43 Industry ........................................................................................................................................................................ 63 Business ....................................................................................................................................................................... 70 Management ................................................................................................................................................................ 86 Principal Shareholders ................................................................................................................................................. 91 Related Party Transactions .......................................................................................................................................... 92 Description of the Notes .............................................................................................................................................. 95 Book-Entry, Delivery and Form ................................................................................................................................ 146 Transfer Restrictions .................................................................................................................................................. 150 Taxation ....................................................................................................................................................................