Mexico’s Pemex eyes new notes, as well as exchange and tender offers

By Wendy Van Sickle

Columbus, Ohio, Sept. 11 – Petroleos Mexicanos SAB de CV is planning an offering of new dollar-denominated notes, with proceeds earmarked to conduct a series of liability management transactions targeting its outstanding notes, according to a Wednesday press release.

Pemex is also expecting to receive a capital contribution from the government of Mexico in an amount of Mexican pesos equivalent to $5 billion as part of the government's effort to strengthen Pemex’s financial stability, according to the release. Proceeds from the capital contribution would also be applied to the liability management transactions.

The liability management transactions that are to be funded by the capital contribution are expected to include private cash tender offers for the following outstanding Pemex securities:

• 6% notes due 2020;

• 8 5/8% bonds due 2022;

• 4 7/8% notes due 2022;

• 3½% notes due 2020;

• Floating-rate notes due 2022;

• 3½% notes due 2023;

• 5½% notes due 2021;

• 5 3/8% notes due 2022;

• 4 5/8% notes due 2023; and

• 6 3/8% notes due 2021.

The Rule 144A and Regulation S offering of global notes in one or more series is subject to market and other conditions, the company noted. The notes would be issued under the company’s $102 billion medium-term note program.

The new notes would be jointly and severally guaranteed by Pemex Exploracion y Produccion, Pemex Transformacion Industrial and Pemex Logistica, and their respective successors and assignees.

In connection with pricing of the new notes, Pemex expects to launch exchange offers for the following outstanding Pemex securities:

• 4 7/8% notes due 2022;

• 4 5/8% notes due 2023;

• 5½% bonds due 2044;

• 8 5/8% bonds due 2022;

• 8 5/8% guaranteed bonds due 2023;

• 6 3/8% bonds due 2045;

• Floating-rate notes due 2022;

• 4 7/8% notes due 2024;

• 5 5/8% bonds due 2046;

• 5 3/8% notes due 2022;

• 4Ό% notes due 2025;

• 6Ύ% bonds due 2047;

• 3½% notes due 2023;

• 6½% bonds due 2041; and

• 6.35% bonds due 2048.

Pemex is a Mexico City-based oil and gas company.

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