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

By Mary-Katherine Stinson

Lexington, Ky., Nov. 7 – Fomento Economico Mexicano, SAB de CV (Femsa) reported the results of 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 6-K filing with the Securities and Exchange Commission.

Femsa will accept for purchase all $126,799,000 of notes tendered under the offer for a purchase price, calculated using the 4 3/8% U.S. Treasury due 2043 and a fixed spread of 20 basis points, of $900.21 per $1,000 principal amount.

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

The offer expired at 5 p.m. ET on Nov. 6, which was also the withdrawal deadline.

There were no notes tendered under guaranteed delivery procedures. 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. These conditions have been satisfied, according to the release.

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/) is 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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