Femsa gives final results in tender offers for four notes

By Mary-Katherine Stinson

Lexington, Ky., March 17 – Fomento Economico Mexicano SAB de CV (Femsa) announced final results for its Feb. 17 cash tender offers for four series of notes, up to a $2 billion aggregate purchase price, according to a press release.

In total, holders tendered the following notes by the expiration date, listed in order of acceptance priority level:

• $943,054,000 of the $2.5 billion outstanding 3½% senior notes due 2050 with a first par call date on July 16, 2049 (Cusip: 344419AC0) including $200,000 tendered after the early deadline, all of which were accepted for purchase for a total consideration of $752.78 per $1,000 principal amount, with the purchase price based on the 4% U.S. Treasury due Nov. 15, 2052 and a fixed spread of 120 basis points;

• $147.17 million of the $700 million outstanding 4 3/8% senior notes due 2043 (Cusip: 344419AB2) including $420,000 tendered after the early deadline, all of which were accepted for purchase for a total consideration of $869.57 per $1,000 principal amount;

• €406,531,000 of the €700 million outstanding ½% senior notes due 2028 (ISIN: XS2337285519) including €18.56 million tendered after the early deadline, all of which were accepted for purchase for a total consideration of €848.76 per €1,000 principal amount, with the purchase price based on the 2028 interpolated mid-swap rate and a fixed spread of 30 bps (previously listed as 70 bps); and

• €259,188,000 of the €500 million outstanding 1% senior notes due 2033 (ISIN: XS2337285865) including €4.05 million tendered after the early deadline, all of which were accepted for purchase for a total consideration of €751.49 per €1,000 principal amount, with the purchase price based on the 2033 interpolated mid-swap rate plus a fixed spread of 70 bps (previously changed from 30 bps).

The total consideration includes a $30 or €30 early tender premium which will be paid to all noteholders who tendered their notes by the expiration date.

The early tender deadline was 2 a.m. ET on March 3. Settlement for the early tendered notes occurred on March 7.

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

Interest will be paid to the final settlement date, which is expected to be March 20.

The offers were conditioned on Femsa successfully borrowing enough proceeds under a dollar-denominated credit agreement that was to be executed on Feb. 16, with cash on hand, to fund the tender offer. As previously reported, all conditions that were to be satisfied or waived by the early tender time had been met or waived.

BofA Securities, Inc. is the dealer manager (888 292-0070, 646 855-8988, +44 20 7996 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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