Pemex to begin exchange, tender offers for 12 existing securities

By Marisa Wong

Los Angeles, Dec. 6 – Petroleos Mexicanos (Pemex) intends to launch liability management transactions including offers to exchange existing securities for new securities and cash and offers to purchase existing securities for cash, according to a Monday press release.

The exchange offers will have priority over the cash purchase offers.

Under the exchange offers, Pemex will offer to exchange the following outstanding securities for a combination of new securities and cash:

• 4 7/8% notes due 2024, with 70% of the exchange consideration expected to be paid in cash;

• 4¼% notes due 2025, with 60% of the exchange consideration expected to be paid in cash;

• 6 7/8% notes due 2025, with 55% of the exchange consideration expected to be paid in cash;

• 4½% notes due 2026, with 50% of the exchange consideration expected to be paid in cash;

• 6 7/8% notes due 2026, with 45% of the exchange consideration expected to be paid in cash;

• 6.49% notes due 2027, with 40% of the exchange consideration expected to be paid in cash;

• 6½% notes due 2027, with 40% of the exchange consideration expected to be paid in cash;

• 9½% global guaranteed bonds due 2027, with 40% of the exchange consideration expected to be paid in cash;

• 9½% guaranteed bonds due 2027, with 40% of the exchange consideration expected to be paid in cash;

• 5.35% notes due 2028, with 10% of the exchange consideration expected to be paid in cash;

• 6½% notes due 2029, with 5% of the exchange consideration expected to be paid in cash; and

• 6.84% notes due 2030, with 5% of the exchange consideration expected to be paid in cash.

Under the second set of offers, Pemex is offering to purchase for cash the following outstanding securities:

• 5 5/8% bonds due 2046;

• 5½% bonds due 2044;

• 6.35% bonds due 2048;

• 6 3/8% bonds due 2045;

• 6¾% bonds due 2047; and

• 6.95% bonds due 2060.

The release noted that the liability management transactions do not target outstanding Pemex securities maturing in 2022 and 2023, given the commitment from the Mexican government to ensure budgetary allocations for additional capital injections to Pemex to cover those maturities.

The liability management transactions will be financed with proceeds from a capital injection from the Mexican government and a concurrent issuance of new money securities.

The newly issued securities to be delivered as part of the consideration in the exchange offers are expected to have identical terms (other than issue date), be consolidated, form a single series and be fully fungible with the new money securities.

The state-owned petroleum company is based in Mexico City.

© 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.