Methanex Announces Upsize and Pricing of Senior Unsecured Notes
Methanex has announced that its subsidiary, Methanex US Operations, has priced an offering of US$600 million in senior unsecured notes due 2032, with a 6.250% interest rate. The offering, upsized from the initially planned US$500 million, will be issued at 99.289% of principal amount with a 6.375% effective yield. The notes will be guaranteed by Methanex and are expected to close around November 22, 2024. The proceeds will partially fund the previously announced OCI Global's international methanol business acquisition. The notes include a special mandatory redemption clause if the acquisition fails to complete by May 31, 2026.
Methanex ha annunciato che la sua controllata, Methanex US Operations, ha fissato il prezzo di un'offerta di 600 milioni di dollari USA in note non garantite senior con scadenza nel 2032, al tasso d'interesse del 6,250%. L'offerta, aumentata dai 500 milioni di dollari USA inizialmente previsti, sarà emessa al 99,289% dell'importo principale con un rendimento effettivo del 6,375%. Le note saranno garantite da Methanex e si prevede che si chiudano intorno al 22 novembre 2024. I proventi finanzieranno parzialmente l'
Methanex ha anunciado que su filial, Methanex US Operations, ha fijado el precio de una oferta de 600 millones de dólares estadounidenses en notas senior no garantizadas con vencimiento en 2032, con una tasa de interés del 6,250%. La oferta, incrementada de los 500 millones de dólares estadounidenses inicialmente planeados, se emitirá al 99,289% del monto principal con un rendimiento efectivo del 6,375%. Las notas serán garantizadas por Methanex y se espera que cierren alrededor del 22 de noviembre de 2024. Los ingresos se destinarán parcialmente a financiar la adquisición del negocio internacional de metanol de OCI Global que se anunció anteriormente. Las notas incluyen una cláusula especial de redención obligatoria si la adquisición no se completa antes del 31 de mayo de 2026.
메탄엑스는 자회사인 Methanex US Operations가 6억 달러 규모의 만기 2032년의 선순위 무보증 채권을 6.250%의 이율로 발행하기로 가격을 책정했다고 발표했습니다. 원래 계획된 5억 달러에서 증가한 이번 발행은 원금의 99.289%에 발행되며, 유효 수익률은 6.375%입니다. 해당 채권은 메탄엑스가 보증하며, 2024년 11월 22일에 마감될 것으로 예상됩니다. 이 수익금은 OCI Global의 국제 메탄올 사업 인수에 부분적으로 사용될 예정입니다. 채권에는 인수가 2026년 5월 31일까지 완료되지 않을 경우 특별 조기상환 조건이 포함되어 있습니다.
Methanex a annoncé que sa filiale, Methanex US Operations, a fixé le prix d'une offre de 600 millions de dollars américains en obligations seniors non garanties arrivant à échéance en 2032, avec un taux d'intérêt de 6,250%. L'offre, augmentée par rapport aux 500 millions de dollars américains initialement prévus, sera émise à 99,289% du montant principal avec un rendement effectif de 6,375%. Les obligations seront garanties par Methanex et devraient se clôturer aux alentours du 22 novembre 2024. Les recettes financeront en partie l'
Methanex hat bekannt gegeben, dass ihre Tochtergesellschaft, Methanex US Operations, ein Angebot von 600 Millionen US-Dollar in unbesicherten vorrangigen Anleihen mit Fälligkeit 2032 zu einem Zinssatz von 6,250% angeboten hat. Das Angebot, das von ursprünglich geplanten 500 Millionen US-Dollar erhöht wurde, wird zu 99,289% des Nennbetrags ausgegeben, mit einer effektiven Rendite von 6,375%. Die Anleihen werden von Methanex garantiert und sollen voraussichtlich um den 22. November 2024 abgeschlossen werden. Die Erlöse werden teilweise zur Finanzierung der zuvor angekündigten Übernahme des internationalen Methanolgeschäfts von OCI Global verwendet. Die Anleihen enthalten eine spezielle Rückzahlungsbedingung, falls die Übernahme bis zum 31. Mai 2026 nicht abgeschlossen wird.
- Successfully upsized notes offering from $500M to $600M indicating strong investor interest
- Secured funding for strategic acquisition of OCI Global's methanol business
- Taking on substantial new debt with 6.250% interest rate
- Special mandatory redemption clause adds uncertainty to the note offering
Insights
The $600 million senior unsecured notes offering at
The successful placement of these notes strengthens Methanex's acquisition financing structure, though it will increase the company's debt service obligations. The 2032 maturity provides adequate time for potential synergies from the OCI acquisition to materialize, but investors should monitor the impact on the company's debt-to-EBITDA ratios and overall financial flexibility.
VANCOUVER, British Columbia, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (NASDAQ:MEOH) (“Methanex”) announced today that its wholly-owned subsidiary, Methanex US Operations Inc., has priced an offering of US
Methanex intends to use the net proceeds from the Offering to fund a portion of the cash purchase price of its previously announced agreement to acquire OCI Global’s international methanol business (the “OCI Acquisition”) and for general corporate purposes.
The notes will be subject to a special mandatory redemption if either (1) the OCI Acquisition is not completed within the time period required by the related acquisition agreement, as it may be extended (but in no event later than May 31, 2026) or (2) Methanex publicly announces that it will not proceed with the OCI Acquisition for any reason, as further described in the terms of the notes.
The notes have not been and will not be registered under the Securities Act, or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to or for the account or benefit of any U.S. persons absent registration under the Securities Act or an applicable exemption from the registration requirements thereof. The notes are being offered and sold only to qualified institutional buyers in the United States in accordance with Rule 144A under the Securities Act and outside of the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes will be offered and sold in Canada on a private placement basis pursuant to certain exemptions from the prospectus requirements of applicable Canadian securities laws.
This news release is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, the notes in the United States, in any province of Canada or any other jurisdiction, nor shall there be any sale of the notes in any province or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province or jurisdiction or an exemption therefrom.
About Methanex
Methanex is a Vancouver-based, publicly traded company and is the world’s largest supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the NASDAQ Global Select Market in the United States under the trading symbol “MEOH”.
Forward-Looking Statements
This news release contains certain forward-looking statements, or forward-looking information, with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the word “intend”, “expect”, “will” or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements. More particularly and without limitation, the following are forward-looking statements: the completion of the Offering and the timing thereof; Methanex’s intended use of proceeds to fund a portion of the cash purchase price for the OCI Acquisition; the completion of the OCI Acquisition; and the contingencies surrounding the special mandatory redemption.
Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, risks relating to conditions in the financial markets and other risk factors as detailed from time to time in Methanex’s reports filed with Canadian securities administrators and the U.S. Securities and Exchange Commission. Certain of these risks are described in more detail in our 2023 Annual Management’s Discussion and Analysis, Third Quarter 2024 Management’s Discussion and Analysis and in our public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking statements. They are not a substitute for the exercise of one’s own due diligence and judgment. The outcomes implied by forward-looking statements may not occur and we do not undertake to update forward-looking statements except as required by applicable securities laws.
Contact
Sarah Herriott
Director, Investor Relations
Methanex Corporation
604 661 2600 or Toll Free: 1 800 661 8851
FAQ
What is the size and interest rate of Methanex's (MEOH) new notes offering?
What will Methanex (MEOH) use the proceeds from the notes offering for?
When will Methanex's (MEOH) notes offering close?
What is the special mandatory redemption clause in Methanex's (MEOH) notes?
