Mexico’s Femsa begins tender offer for 4 3/8% notes due 2043

By Marisa Wong

Los Angeles, Oct. 31 – Fomento Economico Mexicano, SAB de CV (Femsa) has begun an offer to purchase for cash any and all of its $552.83 million of outstanding 4 3/8% senior notes due 2043 (Cusip: 344419AB2), according to a press release.

The purchase price will be calculated using the 4 3/8% U.S. Treasury due 2043 and a fixed spread of 20 basis points.

The company will also pay accrued interest.

Pricing will be determined at 11 a.m. ET on Nov. 6.

The offer will expire at 5 p.m. ET on Nov. 6, which is also the withdrawal deadline.

Tenders under guaranteed delivery procedures are due by 5 p.m. ET on Nov. 8.

Settlement is expected to be on Nov. 9.

The tender offer is not conditioned on the tender of any minimum principal amount of securities but is subject to some other conditions.

BofA Securities, Inc. (888 292-0070 or 646 855-8988) is dealer manager for the tender offer.

Global Bondholder Services Corp. (855 654-2014 or 212 430-3774; https://www.gbsc-usa.com/femsa/) will act as the tender agent and information agent.

Femsa is a Monterrey, Mexico-based beverage and retail company and is a franchise bottler of Coca-Cola products.

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