Mexico buys back $2.9 billion of debt

By Reshmi Basu

New York, March 3 - The United Mexican States said it bought back $2.9 billion of foreign currency bonds via a modified Dutch auction.

Mexico offered to pay cash for 25 different bonds, which are denominated in dollars, euros and sterling. Maturities range from 2007 and 2033.

Earlier the country said that it would buy back up to $5 billion.

The amount bought and prices were:

• 9 7/8% global bonds due 2007: $278 million repurchased at $1,050 per $1,000 principal amount; clearing spread of 132 basis points below 5.111% reference yield; demand pro rated by 0.57 because of oversubscription; $1.129 billion remaining after tender;

• 9 1/8% notes due 2007: €20 million repurchased at €1,055 per €1,000 principal amount; clearing spread of 12 basis points above 3.02% reference yield; no pro ration; €202 million remaining after tender;

• 8 5/8% global bonds due 2008: $226 million repurchased at $1,075 per $1,000 principal amount; clearing spread of 49 basis points below 5.163% reference yield; no pro ration; $1.163 billion remaining after tender;

• 4 5/8% global notes due 2008: $306 million repurchased at $989 per $1,000 principal amount; clearing spread of 7 basis points below 5.159% reference yield; no pro ration; $1.193 billion remaining after tender;

• 7 3/8% notes of 2008: €132.5 million repurchased at €1,080 per €1,000 principal amount; clearing spread of 11 basis points below 3.309% reference yield; no pro ration; €617 million remaining after tender;

• 8% bonds of 1997/2008: €37 million repurchased at €1,110 per €1,000 principal amount; clearing spread of 16 basis points above 3.348% reference yield; no pro ration; €347 million remaining after tender;

• 10 3/8% global bonds due 2009: $360 million repurchased at $1,142 per $1,000 principal amount; clearing spread of 5 basis points below 5.156% reference yield; demand pro rated by 0.47 because of oversubscription; $1.442 billion remaining after tender;

• 8¼% bonds of 1997/2009; €65 million repurchased at €1,129 per €1,000 principal amount; clearing spread of 17 basis points above 3.411% reference yield; no pro ration; €702 million remaining after tender;

• 9 7/8% notes due 2010: not repurchased; $2 billion remaining after tender;

• 7½% notes due 2010: €81 million repurchased at $1,137 per $1,000 principal amount; clearing spread of 25 basis points above 3.496% reference yield; no pro ration; €918 million remaining;

• 8 3/8% global notes due 2011: not repurchased; $2.5 billion remaining after tender;

• 7½% global notes due 2012; $238 million repurchased at $1,102 per $1,000 principal amount; clearing spread of 25 basis points above 3.496% reference yield; demand pro rated by 0.42 because of oversubscription; $1.26 billion remaining after tender;

• 6 3/8% global notes due 2013; $258 million repurchased at $1,050 per $1,000 principal amount; clearing spread of 29 basis points above 5.197% reference yield; demand pro rated by 0.41 because of oversubscription; $1.74 billion remaining after tender;

• 10% step-down notes due 2013: €35 million repurchased at €1,196 per €1,000 principal amount; clearing spread of 48 basis points above 3.649% reference yield; no pro ration; €347 million remaining after tender;

• 5 3/8% global notes due 2013: €27 million repurchased at €1,077 per €1,000 principal amount; clearing spread of 47 basis points above 3.657% reference yield; no pro ration; €723 million remaining after tender;

• 5 7/8% global notes due 2014: not repurchased; $1.79 billion remaining after tender;

• 6 5/8% global notes due 2015: $440 million repurchased at $1,075 per $1,000 principal amount; clearing spread of 35 basis points above 5.207% reference yield; demand pro rated by 0.63 because of oversubscription; $1.56 billion remaining after tender;

• 11 3/8% global bonds due 2016: not repurchased; $2.39 billion remaining after tender;

• 11% notes due 2017; €6.3 million repurchased at €1,570 per €1,000 principal amount; clearing spread of 62 basis points above 3.80% reference yield; no pro ration; €252 million remaining after tender;

• 8 1/8% global notes due 2019; $37 million repurchased at $1,215 per $1,000 principal amount; clearing spread of 61 basis points above 5.228% reference yield; no pro ration; $2.42 billion remaining after tender;

• 8% global notes due 2022; $14.7 million repurchased at $1,212 per $1,000 principal amount; clearing spread of 73 basis points above 5.238% reference yield; no pro ration; $1.142 billion remaining after tender;

• 6¾% notes due 2024; £23 million repurchased at £1,140 per £1,000 principal amount;

• 11½% global bonds due 2026: not repurchased; £476 million remaining after tender;

• 8.30% global notes due 2031: $86.8 million repurchased at $1,261 per $1,000 principal amount; clearing spread of 100 basis points above 5.239% reference yield; no pro ration; $2.838 billion remaining after tender;

• 7½% global notes due 2033: not repurchased; $2.881 billion remaining after tender.

D.F. King & Co., Inc. is information agent (banks and brokers call collect 212 269-5550; others call 800 431-9633).

Dealer managers are Goldman Sachs (800 828-3182 or call collect 212 902-8194) and Morgan Stanley (800 624-1808 or call collect 212 761-1864).

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