Houlihan Lokey Advises Ad Hoc Group of Unigel Noteholders

Houlihan Lokey is pleased to announce the successful closing of the extrajudicial reorganization plan of Unigel Participações S.A. (Unigel) and certain subsidiaries. The transaction encompasses the exchange of notes due 2026 (the notes) for new financial instruments as part of a holistic restructuring transaction that addressed Unigel’s $900 million indebtedness. Additionally, it involves the issuance of $120 million new secured debt led and backstopped by an ad hoc group of the notes (the AHG). Houlihan Lokey served as the exclusive financial advisor to the AHG.

Unigel is one of the leading chemical companies in Brazil and stands as the leading Latin American producer of acrylic and styrene-derived products.

After a period of high capex, global chemicals downcycle, and high raw material costs in the fertilizer segment, Unigel began facing liquidity problems. Consequently, in mid-2023, the company engaged in restructuring discussions with its creditors.

Houlihan Lokey was engaged by the AHG to negotiate a holistic reorganization solution, providing Unigel with additional runway and flexibility to execute its business plan. Ultimately, the AHG and the company reached an agreement for the exchange of the notes into equity, new restructured notes, and participating titles, supported by a security package comprising most of the company’s assets. This agreement established a strategic partnership between the Slezynger family and the AHG as co-controllers of a renewed Unigel and included the issuance of $120 million in new secured debt.

The $120 million in new secured debt was backstopped and mostly underwritten by members of the AHG, who partnered with Unigel to support the ongoing strengthening of its balance sheet.

The extrajudicial reorganization proceeding was submitted on February 20, 2024, with the support of the AHG, approved on November 12, and closed on January 30, 2025. The transaction granted Unigel a significantly extended maturity runway, enhanced financial flexibility to accelerate the development of its sulfuric acid plant, and a clear pathway to substantial deleveraging and long-term operational growth, solidifying the company’s foundation for future success.

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