Nemak secures 89.38% of senior notes in tender offer

Mexican automotive component supplier Nemak announced that its cash tender offer and consent solicitation for any and all of its outstanding 2.250% Senior Notes due 2028 expired on September 22, 2026. By the deadline, the company received valid tenders and consents covering approximately €446,911,000, representing 89.38% of the total outstanding principal amount.

The consents exceeded the threshold required to execute a supplemental indenture. The amendments will eliminate substantially all restrictive covenants and certain events of default under the notes. They will also shorten the minimum notice period for early redemption from 30 days to three business days, and the notice period for the officers' certificate from 45 days to three business days.

Nemak plans to settle the transaction on September 24, 2026. Participating noteholders will receive €1,000 in cash per €1,000 principal amount tendered, plus accrued and unpaid interest up to, but excluding, the settlement date. Nemak noted that it may, but is not obligated to, redeem the remaining outstanding notes following settlement.

Scotia Capital (USA) Inc. served as dealer manager and solicitation agent, while D.F. King Ltd. acted as tender, tabulation and information agent for the transaction.