Mexico sets spread for reopened notes in Dutch auction to exchange several notes series

By Jennifer Chiou

New York, Jan. 10 - The United Mexican States announced an issue spread of 141 basis points for the reopened notes in the modified Dutch auction to exchange several series of its existing bonds for new reopened 6¾% global notes due Sept. 27, 2034.

Included notes series are Mexico's $2,025,434,000 of 8 1/8% global bonds due 2019, $1,049,193,000 of 8% global notes due 2022, $533.664 million of 11½% global bonds due 2026, $2,691,426,000 of 8.3% global notes due 2031 and $2,485,878,000 of 7½% global notes due 2033.

As already announced, the 8 1/8% notes have a minimum clearing spread differential of 47 basis points, while the 8% notes have 33 bps, the 11½% bonds with 9 bps and the 8.3% notes have a cash payment of $240.00 and 7 bps, and the 7½% global notes due 2033 have a $370.00 cash payout and 6 bps.

The reopened 6¾% notes will be consolidated and form a single series with Mexico's outstanding $1.5 billion 6¾% notes due 2034.

The exchange ends at 5 p.m. ET on Jan. 11. It began on Jan. 8.

Mexico said there is no minimum or maximum amount of reopened notes that may be issued, adding that it may purchase up to $500 million of the old bonds.

The purchase price for each series of bonds will be determined at 9 a.m. ET on Jan. 12, using the U.S. Treasury 4.5% bond due Feb. 15, 2036.

The dealer managers are Barclays Capital Inc. (866 307-8991 or call collect 212 412-4072) and Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-1864). Bondholder Communications Group is the information agent (212 809-2663).

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