Obligation Alpek SAB de CV 4.25% ( USP01703AC49 ) en USD

Société émettrice Alpek SAB de CV
Prix sur le marché refresh price now   100 %  ▲ 
Pays  Mexique
Code ISIN  USP01703AC49 ( en USD )
Coupon 4.25% par an ( paiement semestriel )
Echéance 17/09/2029



Prospectus brochure de l'obligation Alpek S.A.B. de C.V USP01703AC49 en USD 4.25%, échéance 17/09/2029


Montant Minimal 200 000 USD
Montant de l'émission 500 000 000 USD
Cusip P01703AC4
Notation Standard & Poor's ( S&P ) BB+ ( Spéculatif )
Notation Moody's N/A
Prochain Coupon 18/09/2025 ( Dans 111 jours )
Description détaillée Alpek S.A.B. de C.V. est une société mexicaine intégrée de produits pétrochimiques, produisant et commercialisant des polymères, des fibres et des produits chimiques de base.

L'Obligation émise par Alpek SAB de CV ( Mexique ) , en USD, avec le code ISIN USP01703AC49, paye un coupon de 4.25% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 17/09/2029
L'Obligation émise par Alpek SAB de CV ( Mexique ) , en USD, avec le code ISIN USP01703AC49, a été notée BB+ ( Spéculatif ) par l'agence de notation Standard & Poor's ( S&P ).







OFFERING MEMORANDUM
US$500,000,000
Alpek, S.A.B. de C.V.
4.250% Senior Notes due 2029
_____________________
We are offering US$500,000,000 aggregate principal amount of our 4.250% Senior Notes due 2029 (the "notes"). We wil pay interest on the notes semi-annually in
arrears on March 18 and September 18 of each year, beginning on March 18, 2020. The notes will mature on September 18, 2029.
We may redeem the notes, at our option, in whole or in part, at any time and from time to time, prior to June 18, 2029 (the date that is three months prior to the
scheduled maturity of the notes), at a redemption price equal to the greater of 100% of the outstanding principal amount of the notes to be redeemed and the applicable "make-
whole" amount plus in each case accrued and unpaid interest and additional amounts thereon, if any, to the redemption date. In addition, we may redeem the notes at our option, in
whole or in part, at any time and from time to time, beginning on June 18, 2029 (the date that is three months prior to the scheduled maturity of the notes), at a redemption price
equal to 100% of the outstanding principal amount of the notes to be redeemed, plus accrued and unpaid interest, and additional amounts thereon, if any, to the redemption date. In
the event of certain changes in tax laws applicable to payments of interest or amounts deemed interest under the notes, we may redeem the notes in whole, but not in part, at 100%
of their principal amount, plus accrued and unpaid interest and additional amounts thereon, if any, to the redemption date. Upon the occurrence of a change of control triggering
event, we will be required to offer to repurchase the notes at 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date the notes are repurchased.
There is no sinking fund for the notes.
The notes will be unconditionally guaranteed by certain of our subsidiaries. The notes and the subsidiary guarantees will be our and our subsidiary guarantors' senior
unsecured general obligations (subject to certain statutory preferences under Mexican law, including tax, social security and labor claims) and will rank equally in right of payment
with each other and with all of our and our subsidiary guarantors' respective existing and future senior unsecured indebtedness. The notes and the subsidiary guarantees will rank
effectively junior to any of our and the subsidiary guarantors' respective existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness
and structurally junior to debt obligations of our non-guarantor subsidiaries.
No public market currently exists for the notes. This Offering Memorandum constitutes a Listing Particulars for the purposes of listing on the Official List of the Irish
Stock Exchange plc, trading as Euronext Dublin ("Euronext Dublin"). Application has been made to Euronext Dublin for the notes to be admitted to the Official List and to trading
on the Global Exchange Market of Euronext Dublin. Euronext Dublin has approved this Listing Particulars.
Investing in the notes involves risks. See "Risk Factors" beginning on page 20 for certain information that you should
consider before investing in the notes.
_____________________
Offering Price: 99.718%, plus accrued interest, if any, from September 18, 2019.
_____________________
THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE NATIONAL SECURITIES REGISTRY (REGISTRO NACIONAL DE
VALORES) 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, EXCEPT TO INVESTORS DEEMED AS INSTITUTIONAL OR QUALIFIED
INVESTORS, PURSUANT TO THE PRIVATE PLACEMENT EXEMPTION SET FORTH IN ARTICLE 8 OF THE MEXICAN SECURITIES MARKET LAW (LEY
DEL MERCADO DE VALORES), AND REGULATIONS THEREUNDER. WE WILL NOTIFY THE CNBV OF THE TERMS AND CONDITIONS OF THIS
OFFERING OF NOTES AS REQUIRED UNDER APPLICABLE LAW AND FOR INFORMATIONAL PURPOSES ONLY. DELIVERY OR RECEIPT OF SUCH
NOTICE DOES NOT CONSTITUTE OR IMPLY A CERTIFICATION AS TO THE INVESTMENT QUALITY OF THE NOTES, OUR SOLVENCY, LIQUIDITY
OR CREDIT QUALITY OR THE ACCURACY OR COMPLETENESS OF THE INFORMATION SET FORTH IN THIS OFFERING MEMORANDUM. THIS
OFFERING MEMORANDUM IS SOLELY OUR RESPONSIBILITY AND HAS NOT BEEN REVIEWED OR AUTHORIZED BY THE CNBV.
The notes have not been, and wil not be, registered under the U.S. Securities 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 institutional 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 provisions 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 are being offered pursuant to an exemption from the requirement to publish a prospectus under Regulation (EU) 2017/1129 (as amended and supplemented
from time to time, the "Prospectus Regulation"), of the European Union, and this offering memorandum has not been approved by a competent authority within the meaning of the
Prospectus Regulation. The notes are not intended to be offered, sold, or otherwise made available to and should not be offered, sold, or otherwise made available to any retail
investor in the European Economic Area.
The notes will be represented by global notes in registered form. Delivery of the notes was made to investors in book-entry form 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 September 18, 2019.
Joint Book-Running Managers
Citigroup
HSBC
J.P. Morgan
MUFG
The date of this offering memorandum is November 21, 2019.


TABLE OF CONTENTS
Page
Notice to Investors....................................................................................................................................................... ii
Enforcement of Civil Liabilities ................................................................................................................................. iii
Available Information................................................................................................................................................. iv
Forward-Looking Statements ...................................................................................................................................... v
Certain Definitions .................................................................................................................................................... vii
Presentation of Financial and Certain Other Information............................................................................................ x
Summary...................................................................................................................................................................... 1
The Offering .............................................................................................................................................................. 13
Summary Historical Financial Data and Other Information...................................................................................... 17
Risk Factors............................................................................................................................................................... 20
Exchange Rate Information ....................................................................................................................................... 44
Use of Proceeds ......................................................................................................................................................... 45
Capitalization............................................................................................................................................................. 46
Selected Historical Financial Data and Other Information........................................................................................ 47
Management's Discussion and Analysis of Financial Condition and Results of Operations ................................... 50
Industry...................................................................................................................................................................... 77
Business..................................................................................................................................................................... 98
Management ............................................................................................................................................................ 127
Principal Shareholders............................................................................................................................................. 131
Related Party Transactions ...................................................................................................................................... 132
Description of the Notes .......................................................................................................................................... 133
Book-Entry, Delivery and Form.............................................................................................................................. 156
Transfer Restrictions................................................................................................................................................ 160
Taxation................................................................................................................................................................... 163
Plan of Distribution ................................................................................................................................................. 170
Listing and General Information.............................................................................................................................. 177
Legal Matters........................................................................................................................................................... 179
Independent Auditors .............................................................................................................................................. 180
Index to Financial Statements...................................................................................................................................F-1
You should rely only on the information contained in this offering memorandum. We have not, and the
initial purchasers have not, authorized anyone to provide you with information that is different from or additional to
that contained in this offering memorandum, and we take no responsibility for any other information that others may
give you. If anyone provides you with different or additional information, you should not rely on it. You should
assume that the information in this offering memorandum is accurate only as of the date on the front cover of this
offering memorandum, regardless of time of delivery of this offering memorandum or any sale of the notes. Our
business, financial condition, results of operations and prospects may change after the date on the front cover of this
offering memorandum. This document may only be used where it is legal to sell the notes. Neither we nor any of the
initial purchasers is making an offer to sell the notes in any jurisdiction where such an offer is not permitted.
Unless otherwise indicated or the context otherwise requires, all references in this offering
memorandum to "Alpek," "our company," "the Company," "we," "ours," "us" or similar terms refer to
Alpek, together with its consolidated subsidiaries and "the Issuer" refer to Alpek, S.A.B. de C.V. on an
individual basis.
i


NOTICE TO INVESTORS
This offering memorandum has been prepared by us solely for use in connection with the proposed offering of
the notes described in this offering memorandum. This offering memorandum is personal to each offeree and does
not constitute an offer to any other person or the public generally to subscribe for or otherwise acquire the notes.
Neither we nor the initial purchasers are making an offer to sell the notes in any jurisdiction except where such
an offer or sale is permitted. You must comply with all applicable laws and regulations in force in your jurisdiction
and you must obtain any consent, approval or permission required by you for the purchase, offer or sale of the notes
under the laws and regulations in force in your jurisdiction to which you are subject or in which you make such
purchase, offer or sale, and neither we nor the initial purchasers will have any responsibility therefor.
We are relying upon an exemption from registration under the Securities Act for an offer and sale of securities
which do not involve a public offering. We have submitted this offering memorandum solely to a limited number of
qualified institutional buyers in the United States and to investors outside the United States so they can consider a
purchase of the notes. This offering memorandum may be used only for the purposes for which it has been
published. By accepting delivery of this offering memorandum, you acknowledge that the use of the information in
this offering memorandum for any purpose other than to consider a purchase of the notes is strictly prohibited. These
undertakings and prohibitions are for our benefit, and we may enforce them. Applicable securities laws restrict
trading in our securities while in possession of material non-public information with respect to us. By accepting
delivery of this offering memorandum and by purchasing the notes, you will be deemed to have made certain
acknowledgments, representations and agreements as set forth under "Transfer Restrictions" in this offering
memorandum. The notes are subject to restrictions on transfer and resale and may not be transferred or resold except
as permitted under the Securities Act and applicable state securities laws pursuant to registration or exemption
therefrom. As a prospective purchaser of the notes, you should be aware that you may be required to bear the
financial risks of this investment for an indefinite period of time.
This offering memorandum is based on information provided by us and obtained from other sources that we
believe to be reliable. We and the initial purchasers cannot assure you that the information obtained from other
sources is accurate or complete. This offering memorandum summarizes certain documents and other information
and we refer you to them for a more complete understanding of what we discuss in this offering memorandum. In
making an investment decision, you must rely upon your own examination of our company and of the terms of the
offering and the notes, including the merits and risks involved.
Neither we nor the initial purchasers are making any representation to any purchaser regarding the legality of an
investment in the notes by such purchaser under any legal investment or similar laws or regulations. You should not
consider any information in this offering memorandum to be legal, financial, business or tax advice. You should
consult your own counsel, accountant, business advisor and tax advisor for legal, accounting, business and tax
advice regarding any investment in the notes.
We reserve the right to withdraw this offering of notes at any time and we and the initial purchasers reserve the
right to reject any commitment to subscribe for the notes in whole or in part and to allot to any prospective investor
less than the full amount of notes sought by that investor. The initial purchasers and certain related entities may
acquire for their own account a portion of the notes.
The initial purchasers make no representation or warranty, express or implied, as to the accuracy or
completeness of the information contained in this offering memorandum. Nothing contained in this offering
memorandum is, or shall be relied upon as, a promise or representation by the initial purchasers as to the past or
future.
None of the U.S. Securities and Exchange Commission ("SEC"), the CNBV or any state or foreign
securities commission or any other regulatory authority has approved or disapproved the offering of the
notes nor have any of the foregoing authorities passed upon or endorsed the merits of this offering or the
accuracy, adequacy or completeness of this offering memorandum. Any representation to the contrary is a
criminal offense.
ii


ENFORCEMENT OF CIVIL LIABILITIES
The Issuer and the majority of the Subsidiary Guarantors (collectively, the "Non-U.S. Alpek Companies") are
incorporated or formed under the laws of countries other than the United States. In addition, most of the directors,
executive officers and controlling persons of the Non-U.S. Alpek Companies are non-residents of the United States
and substantially all of our assets and the assets of such non-resident persons are located in Mexico or elsewhere
outside the United States. As a result, it may not be possible for investors to effect service of process on the Non-
U.S. Alpek Companies or their directors or executive officers, or to enforce judgments obtained in U.S. courts
against the Non-U.S. Alpek Companies or such persons predicated on civil liability provisions of the U.S. securities
laws. The Issuer and each of the non-U.S. Subsidiary Guarantors have appointed CT Corporation System at 28
Liberty Street, Floor 42, New York, NY, 10005, as their agent to receive service of process with respect to any
action brought against any of them in any federal or state court in the State of New York arising under the indenture
governing the notes.
Uncertainty exists as to whether courts in the jurisdictions of organization of the Non-U.S. Alpek Companies
will enforce judgments obtained in other jurisdictions, including the United States, against the Non-U.S. Alpek
Companies or their directors or officers under the securities laws of those jurisdictions or entertain actions in those
jurisdictions against the Non-U.S. Alpek Companies or their directors or officers under the securities laws of other
jurisdictions.
No treaty exists between the United States and Mexico for the reciprocal enforcement of judgments issued in
the other country. Generally, Mexican courts would enforce final judgments rendered in the United States if certain
requirements are met, including the review in Mexico of the U.S. judgment to ascertain compliance with certain
basic principles of due process and the non-violation of Mexican law or public policy (orden público), provided that
U.S. courts would grant reciprocal treatment to Mexican judgments issued in analogous cases. Additionally, there is
doubt as to the enforceability, in original actions in Mexican courts, of liabilities predicated, in whole or in part, on
U.S. federal securities laws and as to the enforceability in Mexican courts of judgments of U.S. courts obtained in
actions predicated on the civil liability provisions of U.S. federal securities laws.
iii


AVAILABLE INFORMATION
We are not subject to the information requirements of the U.S. Securities Exchange Act of 1934, as amended
(the "Exchange Act"). To permit compliance with Rule 144A in connection with resales of notes, we will be
required under the indenture under which the notes are issued (the "Indenture"), upon the request of a holder of Rule
144A notes or Regulation S notes (during the restricted period, as defined in the legend included under "Transfer
Restrictions"), to furnish to such holder and any prospective purchaser designated by such holder the information
required to be delivered under Rule 144A(d)(4) under the Securities Act, unless we either furnish information to the
SEC in accordance with Rule 12g3-2(b) under the Exchange Act or furnish information to the SEC pursuant to
Section 13 or 15(d) of the Exchange Act. Any such request may be made to us in writing at our main office located
at Ave. Gómez Morín 1111 Sur, Col. Carrizalejo, San Pedro Garza García, C.P. 66254, Nuevo León, México.
The Indenture will further require that we furnish to the Trustee (as defined herein) all notices of meetings of
the holders of notes and other reports and communications that are generally made available to holders of the notes.
At our request, the Trustee will be required under the Indenture to mail these notices, reports and communications
received by it from us to all record holders of the notes promptly upon receipt. See "Description of the Notes."
Application has been made to Euronext Dublin for the notes to be admitted to listing on the Official List and to
trading on the Global Exchange Market, a market of Euronext Dublin, in accordance with its rules. This offering
memorandum forms, in all material respects, the listing memorandum for admission to Euronext Dublin. We will be
required to comply with any undertakings given by us from time to time to Euronext Dublin in connection with the
notes, and to furnish to them all such information as the rules of Euronext Dublin may require in connection with the
listing of the notes.
iv


FORWARD-LOOKING STATEMENTS
This offering memorandum includes forward-looking statements. These statements relate to our future
prospects, developments and business strategies and are identified by our use of terms and phrases such as
"anticipate," "believe," "could," "would," "will," "estimate," "expect," "intend," "may," "might," "potential,"
"plan," "predict," "project," "goals," "target," "seek," "should," "strategy" and similar terms and phrases, and may
include references to assumptions. These statements are contained in the sections entitled "Summary," "Risk
Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Industry,"
"Business" and other sections of this offering memorandum.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the
economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they
are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the forward-looking statements. Important factors that
could cause actual results to differ materially from those in the forward-looking statements include regional, national
or global economic, business, market and regulatory conditions, without limitation, and the following:
general economic conditions in the countries in which we conduct our business and any significant
economic, political, regulatory or social developments in those countries;
competition and loss of market share;
availability and price volatility of raw materials and energy;
our ability to maintain high capacity utilization rates;
the impact of competition from other petrochemical manufacturers, including imports of polyester-related
raw materials, polypropylene and products from other regions and the use of substitute products;
our ability to implement our strategy;
loss of business from one or more significant customers;
disruption of our supply chain;
potential changes in industry pricing practices, including changes in the margins in the "cost plus" pricing
formula for purified terephthalic acid ("PTA") in the Americas;
our ability to maintain margins for products sold under fixed price arrangements;
cyclicality in the demand for our products;
losses from derivative transactions, particularly with respect to our energy and raw material requirements;
the impact of hurricanes and other natural disasters;
unanticipated downtime of our production plants;
difficulties, uncertainties, liabilities, unenforceability of provisions (including indemnifications) and
regulations related to mergers, acquisitions, strategic alliances or joint ventures;
risks associated with acquisitions and our ability to integrate and benefit from our recent or future
acquisitions and strategic alliances;
changes to environmental and other regulations, or their interpretation;
loss of key personnel;
risks related to our control by Alfa, S.A.B. de C.V., the Issuer's parent company;
v


interruptions or failures in our information technology systems, including as a result of malicious software;
risks related to fluctuations in currencies or interest rates;
terrorist and organized criminal activities as well as geopolitical events;
increases in our operating costs or our inability to meet efficiency or cost reduction objectives;
changes to regulations or interpretations thereof, in respect of importation and exportation of goods;
risks inherent in international operations, such as trade barriers, currency fluctuations, changes in duties and
royalties;
changes to, or withdrawals from, free trade agreements, including the North American Free Trade
Agreement ("NAFTA"), to which Mexico is a party, and timely ratification of the United States Mexico
Canada Agreement ("USMCA"), to which Mexico is a party and which is intended to replace NAFTA;
the imposition of tariffs on Mexican imports by the United States or any other country;
the implementation of exchange controls in any of the jurisdictions where we operate;
our ability to refinance short-term debt and other obligations on favorable terms; and
other factors described under "Risk Factors" and elsewhere in this offering memorandum.
Should one or more of these factors or situations materialize, or should the underlying assumptions prove to be
incorrect, the actual results may differ considerably from those that are described, foreseen, considered, estimated,
expected, predicted or intended in this offering memorandum.
These forward-looking statements speak only as of the date of this offering memorandum and we undertake no
obligation to update our forward-looking statements or risk factors to reflect new information, future events or
otherwise. Additional factors affecting our business emerge from time to time and it is not possible for us to predict
all of these factors, nor can we assess the impact of all such factors on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statement. Although we believe that the plans, intentions and expectations reflected in or suggested by such forward-
looking statements are reasonable, we cannot assure you that those plans, intentions or expectations will be
achieved. In addition, you should not interpret statements regarding past trends or activities as assurances that those
trends or activities will continue in the future. All written, oral and electronic forward-looking statements
attributable to us or to the persons acting on our behalf are expressly qualified in their entirety by this cautionary
statement.
vi


CERTAIN DEFINITIONS
In this offering memorandum, except where otherwise indicated or the context otherwise requires, references to:
Accounting terms have the definitions set forth under International Financial Reporting Standards, as
issued by the International Accounting Standards Board;
"2022 International Notes" means Alpek's outstanding US$650 million 4.500% Senior Notes due 2022.
See "Management's Discussion and Analysis of Financial Condition and Results of Operations­­Liquidity
and Capital Resources­­International Bonds­­2022 International Notes;"
"2023 International Notes" means Alpek's outstanding US$300 million 5.375% Senior Notes due 2023.
See "Management's Discussion and Analysis of Financial Condition and Results of Operations­­Liquidity
and Capital Resources­­International Bonds­­2023 International Notes;"
"Akra" means Akra Polyester, S.A de C.V., a subsidiary of Alpek Polyester with minority equity
ownership of 6.65% by BP;
"Alfa" means Alfa, S.A.B. de C.V., the Issuer's controlling shareholder;
"Alpek Polyester" or "Petrotemex" means Grupo Petrotemex, S.A. de C.V.;
"BASF" means BASF SE;
"BP" means BP plc;
"Brazilian Assets" means Companhia Petroquímica de Pernambuco ­ PetroquimicaSuape, and Companhia
Integrada Têxtil de Pernambuco ­ CITEPE;
"CAGR" means compound annual growth rate;
"capacity share" refers to the installed capacity at our facilities divided by the total industry capacity
reported by an independent consultant;
"capacity utilization rate" means the percentage utilization of production capacity (as defined below);
"CELCSA" means Cogeneración de Energía Limpia de Cosoleacaque, S.A. de C.V., a subsidiary of Alpek;
"CGA" means Cogeneración de Altamira, S.A. de C.V., a subsidiary of Alpek;
"CITEPE" or "Citepe" means Companhia Integrada Têxtil de Pernambuco ­ CITEPE;
"Clear Path" or "Clear Path Recycling" means Clear Path Recycling, LLC, a strategic alliance between
Shaw Industries Group, Inc. and DAK Americas LLC;
"Cogeneration" or "combined heat and power" or "CHP" means a process that generates electricity and
steam by using heat engine to generate electricity and steam at the same time;
"Columbia Assets" means the three integrated petrochemicals plants located in Columbia, South Carolina,
U.S.A. acquired in 2011 from Eastman, one producing PTA and the other two producing PET;
"ContourGlobal" means ContourGlobal PLC and its subsidiaries;
"CPL" means caprolactam;
"DAK Americas" means DAK Americas LLC;
"EPS" means expandable polystyrene;
vii


"Eastman" means Eastman Chemical Company;
"Euro" or "" means the lawful currency of the European Union;
"Far Eastern" means Far Eastern Investment (Holding) Limited;
"FENC" means Far Eastern New Century and its subsidiaries;
"GAAP" means generally accepted accounting principles in the indicated country;
"GDP" means gross domestic product;
"IASB" means the International Accounting Standards Board;
"IFRIC" means the International Reporting Interpretations Committee;
"IFRS" means International Financial Reporting Standards, as issued from time to time by the IASB;
"Indelpro" means Indelpro, S.A. de C.V.;
"Indorama" means Indorama Ventures Public Company Limited and its subsidiaries;
"Indorama Holdings" means Indorama Venture Holdings LP;
"Installed capacity" means the annual production capacity calculated based on operations for 24 hours each
day of a 365-day year;
"Ktons" means kilotons, or 1,000 Tons (as defined below);
"Libor" means London Interbank Offered Rate;
"MEG" means monoethylene glycol;
"Mexican Central Bank" means Banco de México, the Central Bank of Mexico;
"M&G" means Mossi and Ghisolfi and its subsidiaries;
"M&G México" means M&G Polímeros México, S.A. de C.V.;
"M&G USA" means M&G USA Corp, M&G Resins USA LLC, M&G Polymers USA LLC and M&G
Waters USA LLC;
"NAFTA" means the North American Free Trade Agreement established on January 1, 1994;
"NCPI" means the National Consumer Price Index (Índice Nacional de Precios al Consumidor), published
from time to time by the Mexican Central Bank in the Official Gazette of Mexico (Diario Oficial de la
Federación) or any index that may replace it;
"Official Exchange Rate" means the exchange rate of Mexican Pesos for U.S. Dollars determined by the
Mexican Central Bank for the payment of obligations denominated in foreign currency payable in Mexico,
as published in the Mexican Federal Official Gazette (Diario Oficial de la Federación) on a determined
date;
"Pesos", "Mexican Pesos", "pesos" or "Ps." means the lawful currency of Mexico;
"Perpetual" means the PET recycling plant in Richmond, Indiana acquired from Perpetual Recycling
Solutions LLC;
"PET" means polyethylene terephthalate, in the form of resin;
viii


"Petrobras" means Petróleo Brasileiro S.A. - Petrobras;
"Plastics & Chemicals Business" means the Company's plastics and chemicals line of business comprised
of PP, EPS, CPL, fertilizers and specialty and industrial chemicals;
"Polyester Chain Business" means the Company's polyester chain line of business comprised of PTA, PET
resin, polyester fibers and rPET;
"Polioles" means Polioles, S.A. de C.V.;
"PP" means polypropylene;
"Production capacity" means the annual production capacity which, in the case of Alpek, is calculated
based on operations for 24 hours each day of a 365-day year and deducting 20 days per year of scheduled
downtime for regular maintenance;
"PTA" means purified terephthalic acid;
"pX" means paraxylene;
"R-PET" or "rPET" means polyester product manufactured using as a raw material recycled PET recovered
from post-consumer sources (which can be transformed into high-quality food-grade or fiber-grade);
"Selenis" means Selenis Canada Inc., a producer of PET;
"Shaw Industries" means Shaw Industries Group, Inc.;
"Suape" means Companhia Petroquímica de Pernambuco ­ PetroquimicaSuape;
"Temex" means Tereftalatos Mexicanos, S.A. de C.V., a subsidiary of Alpek Polyester with minority
equity ownership of 8.55% by BP;
"Tons" means metric tons (one metric ton is equal to 1,000 kilograms or 2,204.6 pounds);
"U.S. Dollars" "Dollars" or "US$" means the lawful currency of the United States of America; and
"Wellman" means Wellman Holdings, Inc. (currently known as DAK Pearl River Inc.), the PET resin
producer with assets in Bay St. Louis, Mississippi, U.S.A. that was acquired by DAK Americas LLC on
August 31, 2011.
ix


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