Mexico prices one-day tender offer for $1.5 billion of five series

By Susanna Moon

Chicago, Jan. 10 - The United Mexican States said it will purchase $1.5 billion of five series of notes in its one-day tender offer.

The tender offer began at 8 a.m. ET on Jan. 9 and ended at 4 p.m. ET the same day, with settlement set for Jan. 15.

The breakdown for the tendered amounts is as follows, with the notes listed in order of priority acceptance level:

• $7 million of the $328 million 11.5% global bonds due 2026;

• $159,582,000 of the $1,327,000,000 8.3% global bonds due 2031;

• $230,568,000 of the $1,014,000,000 7.5% global bonds due 2033;

• $786,554,000 of the $2,840,000,000 6.75% global bonds due 2034; and

• $1,561,278,000 of the $4,208,000,000 6.05% global bonds due 2040.

Of the tendered notes, the issuer purchased all of the 11.5% notes, 8.3% notes and 7.5% notes. The issuer purchased on a prorated basis $527,903,000 of the 6.75% notes and $312,245,000 of the 6.05% notes.

Pricing details

Pricing for each $1,000 principal amount of notes was set at 4 p.m. ET on Jan. 9 resulting in a yield to maturity equal to the 2045 new notes issue yield, which was set at 5.586%, less the relative spread for each series.

The purchase price for each $1,000 principal amount and the relative spread are as follows:

• $1,639.14 for the 11.5% global bonds due 2026 with a relative spread of 95 basis points;

• $1,370.56 for the 8.3% global bonds due 2031 with a relative spread of 50 bps;

• $1,279.38 for the 7.5% global bonds due 2033 with a relative spread of 40 bps;

• $1,185.61 for the 6.75% global bonds due 2034 with a relative spread of 32 bps; and

• $1,092.30 for the 6.05% global bonds due 2040 with a relative spread of 20 bps.

Holders will also receive accrued interest up to but excluding the settlement date.

The information agent is Bondholder Communications Group (212 809-2663, attn: Monique Santos, or email msantos@bondcom.com). The dealer managers are Credit Suisse Securities (USA) LLC (attn.: liability management group, 212 538-2147 or 800 820-1653) and HSBC Securities (USA) Inc. (attn: global liability management group, 212 525-5552 or 888 HSBC-4LM).

The tender offer was conditioned on pricing of the 2045 new notes, which occurred Thursday.

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