Morning Commentary: Mexico City Airport bonds jump after amended offer; EM debt firms

By Rebecca Melvin

New York, Dec. 12 – Mexico City Airport’s bonds jumped early Wednesday after the Ministry of Finance and Public Credit announced Tuesday amendments to its tender offer for $1.8 billion of the bonds, representing improvement for holders compared to the original Dec. 3 offer.

The offer is still capped at $1.8 billion of the $6 billion of bonds outstanding, but it includes a buyback price of par plus interest as well as a consent payment for investors who tender before Dec. 19. The previous tender had offered a reverse Dutch auction to determine the prices starting at as low as 90.

The ad hoc bondholder group represented by Hogan Lovells hadn’t yet responded to the amended offer by late morning. But bonds were higher, with Mexico City Airport’s 5½% bonds due 2047 up 1.6 points to 84.70 last.

The bonds of Mexico’s state-owned oil company Petroleos Mexicanos SAB de CV also popped.

Pemex’s 6.5% notes due 2027 and 6¾% notes due 2047 were up as much as 3 points each at 97.5 and 88, respectively, according to Trace data.

Overall tone for emerging market debt was also better, with the iShares ETF based on J.P. Morgan’s U.S. dollar emerging markets bonds up nearly 0.5 point on the day. But even though the tone was better, issuers remained at bay, with no new deals heard in the Central & Eastern Europe, Middle East & Africa region or Latin America.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.