Mexichem Announces It Has Signed a Credit Facility Agreement

TLALNEPANTLA DE BAZ, Mexico–(BUSINESS WIRE)–Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”)
announces that it has signed a credit facility with BBVA-Bancomer of up
to $200 million dollars. The resources of this credit facility will be
used to complete Netafim’s acquisition and could substitute the use of
the revolving credit facility, as previously announced, given more
competitive conditions.

The most relevant terms of the credit agreements are:

• Maturity: 12-months from the borrowing date.
• Annualized interest rate: 3-month Libor + 80.5 basis points.
• Interest payment period: Quarterly
• No penalty for prepayments.
• Guarantors: Subsidiaries that represent at least 50% of Mexichem’s
  Consolidated EBITDA.
• Financial Covenants: Net Debt to EBITDA < 3.0x / Interest Coverage >
  3.0x.
• Others: Unsecured pari passu to Mexichem’s debt.

ABOUT MEXICHEM

Mexichem is a global leader in plastic piping, one of the most
cost-efficient PVC producer and one of the world’s largest chemical and
petrochemical companies. Mexichem contributes to global development by
delivering an extended portfolio of products to high growth sectors such
as infrastructure, housing, Datacom, water management, among others.
With operations in over 30 countries, Mexichem’s global footprint
includes more than 18,000 employees, 120 plants, 2 fluorite mines, 15
R&D laboratories and 8 training academies. Mexichem has annual revenues
of US$5.4 billion, it has over 50 years of history and more than 30
years trading on the Mexican Stock Exchange. The company is member of
the Mexican Stock Exchange Sustainability Index and the sustainability
emerging markets index FTSE4Good.

Forward-looking Statements

In addition to historical information, this press release contains
"forward-looking" statements that reflect management's expectations for
the future. The words “anticipate,” “believe,” “expect,” “hope,” “have
the intention of,” “might,” “plan,” “should” and similar expressions
generally indicate comments on expectations. The final results may be
materially different from current expectations due to several factors,
which include, but are not limited to, global and local changes in
politics, the economy, business, competition, market and regulatory
factors, cyclical trends in relevant sectors; as well as other factors
that are highlighted under the title “Risk Factors” on the annual report
submitted by Mexichem to the Mexican National Banking and Securities
Commission (CNBV). The forward-looking statements included herein
represent Mexichem’s views as of the date of this press release.
Mexichem undertakes no obligation to revise or update publicly any
forward-looking statement for any reason unless required by law.”

Mexichem has implemented a new Code of Ethics that rules its
relationships with its employees, clients, suppliers and general groups.
Mexichem’s Code of Ethics is available for consulting in the following
link: http://www.mexichem.com/Codigo_de_etica.html.
Additionally, Mexichem Audit Committee established a mechanism of
contact, which allows that any person that knows the unfulfillment of
operational and accounting records guidelines and lack of internal
controls of the Code of Ethics, from the Company itself or from the
subsidiaries that this controls, file a complaint which is anonymously
guaranteed. The whistleblower program is facilitated by a third party.
The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem
and contact e-mail is [email protected].
Mexichem’s Audit Committee will be notified of all complaints for
immediate investigation.

Contacts

Mexichem
Investor Relations:
Fabiola Molina del
Valle, + (52) 55.5366.4050
[email protected]
www.mexichem.com