#Senior Notes #Mexico #Tender Offer #Monterrey #Nemak S.A.B

Overview of the Tender Offer

On September 23, 2026, Nemak, S.A.B. de C.V. disclosed the results of their cash tender offer and consent solicitation aimed at all outstanding 2.250% senior notes due in 2028. The offer, which was previously communicated, has now officially concluded as of September 22, 2026, at 11:00 AM ET.

Offer Details

According to the announcement, holders of approximately €446,911,000, equating to about 89.38% of the total outstanding principal amount of the senior notes, participated in the tender offer, demonstrating robust interest among investors. Consequently, the company achieved a sufficient volume of consents to facilitate the proposed amendments to the notes’ indenture.

The amendments will greatly reduce specific obligations tied to the notes, liberating the company from several restrictive covenants that currently govern their operational and financial flexibility. Notably, the minimum notice period required for noteholders regarding redemptions will be cut down from thirty days to a mere three business days.

Once finalized, the Supplemental Indenture—the document enacting these amendments—will significantly enhance Nemak’s strategic alignment with market dynamics. Prior to the operating status of this document, the company must ensure the deposit of the total cash consideration, anticipated to be completed on the forthcoming settlement date set for September 24, 2026.

Financial Implications

With each €1,000 principal amount of notes tendered, investors will receive an immediate cash consideration of €1,000, alongside accrued and unpaid interest up until the settlement date. This incentivizing structure aims to solidify confidence among current and potential bondholders, providing them with liquidity amidst the ongoing dynamics within the automotive sector.

Withdrawal rights concerning the tendered notes were terminated as of the expiration date, aligning with the company’s intentions to streamline acceptance and capital redistribution processes.

Next Steps

Post-settlement, Nemak intends to execute notice of redemption for any senior notes remaining. While the company is under no obligation to do so, this approach reflects a proactive strategy towards overall debt management and corporate governance.

It is essential to note that Scotia Capital (USA) Inc. served as the dealer manager for the tender offer, with D.F. King Ltd. acting as the tender agent—all inquiries and assistance requests can be directed to these entities.

About Nemak

Founded in 1993 and headquartered in Monterrey, Mexico, Nemak operates as a leading global provider of lightweight solutions for the automotive industry. Over recent decades, it has adapted and innovated in line with advancements in e-mobility and automotive technologies, reaffirming its position as a pivotal player in engineering and manufacturing multi-material components. By refining its capital structure through initiatives such as the recent tender offer, Nemak is strategically positioned to navigate the complexities of the evolving automotive landscape effectively.

This tender offer outcome is a hallmark of Nemak's commitment to enhancing shareholder value while ensuring sustainable growth aligned with industry innovations and demands. As the company capitalizes on its strong market position, stakeholders can anticipate a future defined by strategic agility and operational excellence.

For further inquiries regarding this offer, stakeholders are encouraged to reach out to Scotia Capital or D.F. King Ltd. directly.