By William Gullotti
Buffalo, N.Y., Jan. 3 – Mexico priced $7.5 billion of global notes on Tuesday in three parts (Baa2/BBB/BBB-), according to an FWP and a 424B2 filed with the Securities and Exchange Commission.
The 2029-maturing series totaled $1 billion and priced with a 5% coupon at 99.656 to yield 5.076%, or at a spread of 115 basis points over Treasuries.
A $4 billion tranche of notes due May 7, 2036 priced with a 6% coupon at 99.186 to yield 6.096%, or at a 215 bps spread over the benchmark Treasury.
The final series, totaling $2.5 billion and maturing in May 7, 2054, priced with a 6.4% coupon at 99.323 to yield 6.452%, or at a spread of 235 bps over Treasuries.
Each series features a make-whole call until some months prior to maturity, followed by a par call. The make-whole call for the notes due in 2029 will be at Treasuries plus 20 bps, changing to a par call one month prior to maturity. The make-whole for the 2036 notes is at Treasuries plus 35 bps, with the par call starting three months prior to maturity. Likewise, the 2054 notes have a make-whole at Treasuries plus 40 bps, with the par call starting six months prior to maturity.
Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander US Capital Markets LLC are the joint bookrunning managers.
The notes will be listed on the Luxembourg Stock Exchange.
Proceeds will be used for general government purposes, including to refinance, repurchase or retire domestic and external debt.
| Issuer: | Mexico
|
| Amount: | $7.5 billion
|
| Issue: | Global notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander US Capital Markets LLC
|
| Trustee: | Deutsche Bank Trust Co. Americas
|
| Counsel to issuer: | In-house and Cleary Gottlieb Steen & Hamilton LLP
|
| Counsel to underwriters: | Sullivan & Cromwell LLP and Ritch, Mueller y Nicolau, SC
|
| Trade date: | Jan. 2
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 2029 notes
|
| Amount: | $1 billion
|
| Maturity: | May 7, 2029
|
| Coupon: | 5%
|
| Price: | 99.656
|
| Yield: | 5.076%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until April 7, 2029, thereafter at par
|
| Cusip: | 91087BAY6
|
|
|
| 2036 notes
|
| Amount: | $4 billion
|
| Maturity: | May 7, 2036
|
| Coupon: | 6%
|
| Price: | 99.186
|
| Yield: | 6.096%
|
| Spread: | Treasuries plus 215 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps until Feb. 7, 2036; thereafter at par
|
| Cusip: | 91087BAZ3
|
|
|
| 2054 notes
|
| Amount: | $2.5 billion
|
| Maturity: | May 7, 2054
|
| Coupon: | 6.4%
|
| Price: | 99.323
|
| Yield: | 6.452%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps until Nov. 7, 2053; thereafter at par
|
| Cusip: | 91087BBA7
|
|
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