Mexico announces maximum tender purchase amount as $1.96 billion

By Mary-Katherine Stinson

Lexington, Ky., April 21 – Mexico announced the results and purchase prices for each series of notes in its offer to purchase for cash its outstanding notes from nine series, up to an aggregate maximum purchase amount, according to an FWP filed with the Securities and Exchange Commission.

The aggregate purchase amount was announced midmorning on Friday as $1,959,759,000.

The accepted tender results and purchase prices are as follows for each series:

• All $630,779,000 tendered notes were accepted of the preferred tenders and none of the $36,268,000 non-preferred tendered notes were accepted from the $3,107,574,000 outstanding 4.28% global notes due 2041 (Cusip: 91087BAQ3) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 195 basis points for a purchase price of $827.83 per $1,000 amount of old notes tendered for purchase;

• None of the $407,482,000 tendered notes were accepted of the preferred tenders and none of the $48,658,000 non-preferred tendered notes were accepted from the $3,715,392,000 outstanding 4¾% global notes due 2044 (Cusip: 91086QBB3) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 206 bps for a purchase price of $859.62 per $1,000 amount of old notes tendered for purchase;

• None of the $130,991,000 tendered notes were accepted of the preferred tenders and none of the $107,000 non-preferred tendered notes were accepted from the $2,764,306,000 outstanding 5.55% global notes due 2045 (Cusip: 91086QBE7) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 212 bps for a purchase price of $946.69 per $1,000 amount of old notes tendered for purchase;

• None of the $119,422,000 tendered notes were accepted of the preferred tenders and none of the $5 million non-preferred tendered notes were accepted from the $2,344,948,000 outstanding 4.6% global notes due 2046 (Cusip: 91086QBF4) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 210 bps for a purchase price of $830.55 per $1,000 amount of old notes tendered for purchase;

• All of the $199,672,000 tendered notes were accepted of the preferred tenders with no non-preferred notes tendered from noteholders, so all were accepted from the $1,459,599,000 outstanding 4.35% global notes due 2047 (Cusip: 91087BAB6) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 214 bps for a purchase price of $805.75 per $1,000 amount of old notes tendered for purchase;

• All of the $139,283,000 tendered notes were accepted of the preferred tenders with no non-preferred notes tendered from noteholders, so all were accepted from the $2,000,673,000 outstanding 4.6% global notes due 2048 (Cusip: 91087BAD2) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 220 bps for a purchase price of $827.42 per $1,000 amount of old notes tendered for purchase;

• All of the $313,818,000 tendered notes were accepted of the preferred tenders with no non-preferred notes tendered from noteholders, so all were accepted from the $2,256,638,000 outstanding 4½% global notes due 2050 (Cusip: 91087BAG5) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 210 bps for a purchase price of $819.87 per $1,000 amount of old notes tendered for purchase;

• None of the $268,636,000 tendered notes were accepted of the preferred tenders and none of the $1,785,000 non-preferred tendered notes were accepted from the $2,481,041,000 outstanding 5% global notes due 2051 (Cusip: 91087BAL4) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 225 bps for a purchase price of $866.62 per $1,000 amount of old notes tendered for purchase; and

• All of the $676,207,000 tendered notes were accepted of the preferred tenders and none of the $1 million non-preferred tendered notes were accepted from the $2,885,590,000 outstanding 4.4% global notes due 2052 (Cusip: 91087BAS9) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 217 bps for a purchase price of $792.41 per $1,000 amount of old notes tendered for purchase.

The tender offer expired at noon ET on April 20 for non-preferred tenders and at 2 p.m. ET on the same day for preferred tenders.

Pricing was set at 4 p.m. ET on April 20.

Holders participating in the tender offer will also receive accrued interest to but excluding the settlement date.

Mexico gave preference to tendering holders who concurrently submit an indication of interest for the purchase of new dollar-denominated 6.338% global notes due 2053. The tender offer is conditioned on pricing of the new notes.

In the FWP filing for the new notes, it was announced that the aggregate principal amount of new notes includes approximately $1,591,388,000 of new notes intended to fund the purchase of tenders in the concurrent tender offer.

Settlement is scheduled to occur on April 26.

The dealer managers for the tender offer are Citigroup Global Markets Inc. (212 723-6106), HSBC Securities (USA) Inc. (888 HSBC-4LM), Mizuho Securities USA (866 271-7403) and Morgan Stanley & Co. LLC (800 624-1808).

The information agent is D. F. King & Co., Inc. (ums@dfking.com).

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