Femsa corrects pricing terms of $2 billion tender offer for four notes

Chicago, Feb. 17 – Fomento Economico Mexicano SAB de CV (Femsa) corrected the pricing terms in its cash tender offer for up to a $2 billion purchase price covering four notes, according to a press release on Friday evening.

Listed by acceptance priority level, the company is offering to buy from the following series, with the corrected spreads and hypothetical considerations:

• $2.5 billion outstanding 3½% senior notes due 2050 with a first par call date on July 16, 2049 (Cusip: 344419AC0) with the purchase price based on the 4% U.S. Treasury due Nov. 15, 2052 and a fixed spread of 120 basis points for a hypothetical consideration of $768.10 per $1,000 note;

• $700 million outstanding 4 3/8% senior notes due 2043 (Cusip: 344419AB2) with the purchase price based on the 4% U.S. Treasury due Nov. 15, 2042 and a fixed spread of 120 bps for a hypothetical consideration of $893 per $1,000 note;

• €700 million outstanding ½% senior notes due 2028 (ISIN: XS2337285519) with the purchase price based on the 2028 interpolated mid-swap rate and a 30 bps (previously listed as 70 bps) fixed spread for a hypothetical total consideration of €863.71 (instead of €772.24) per €1,000 note; and

• €500 million outstanding 1% senior notes due 2033 (ISIN: XS2337285865) with the purchase price based on the 2033 interpolated mid-swap rate plus a fixed spread of 70 bps (instead of 30 bps) for a hypothetical total consideration of €772.24 (rather than €863.71) per €1,000 note.

All other terms were the same.

Interest will be paid to the initial settlement date.

The total consideration will include a $30 or €30 early tender premium that will not be paid to noteholders who tender after the early tender deadline.

Pricing will be determined at 11 a.m. ET on March 2.

The early tender deadline is 2 a.m. ET on March 3, also the withdrawal time.

The offers expire at 11:59 p.m. ET on March 16.

Initial settlement is expected for March 7 and final settlement is planned for March 20.

The offers are conditioned on Femsa successfully borrowing enough proceeds under a dollar-denominated credit agreement to be executed on Feb. 16, with cash on hand, to fund the tender offer.

Tenders may be prorated.

BofA Securities, Inc. is the dealer manager (888 292-0070, 646 855-8988, +44 207 996 5420).

Global Bondholder Services Corp. is the tender and information agent (212 430-3774, 855 654-2014).

Femsa is a Monterrey, Mexico-based beverage and retail company.

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