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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$600 million aggregate principal amount of 6.250% senior unsecured notes due 2032 (the “notes”) in a private offering (the “Offering”) exempt from the registration requirements of the United States Securities Act of 1933, as amended (the “Securities Act”). The size of the Offering was increased to US$600 million from the previously announced Offering size of US$500 million in aggregate principal amount of notes. The notes will be issued at a price of 99.289% of the aggregate principal amount, with an effective yield to maturity of 6.375%, and will be guaranteed on a senior basis by Methanex. The Offering is expected to close on or about November 22, 2024, subject to the satisfaction of customary closing conditions.
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.