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

By William Gullotti

Buffalo, N.Y., Nov. 6 – Fomento Economico Mexicano, SAB de CV (Femsa) announced the consideration for its offer to purchase for cash any and all of its $552.83 million of outstanding 4 3/8% senior notes due 2043 (Cusip: 344419AB2) in a press release on Monday.

The purchase price, calculated using the 4 3/8% U.S. Treasury due 2043 and a fixed spread of 20 basis points, is $900.21 per $1,000 principal amount.

As previously reported, the company will also pay accrued interest.

The offer expires 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 still 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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