By Christine Van Dusen
Atlanta, Aug. 9 – Mexico released details on its two-tranche issue of $2.76 billion notes due in 2026 and 2047 (expected ratings: A3/BBB+/BBB+) that priced on Monday.
The $760 million tap of the 4 1/8% notes due Jan. 21, 2026 priced at 108.831 to yield 3.042%, or Treasuries plus 145 basis points. The notes were talked in the 165 bps area over Treasuries.
The original issue priced in January at 99.676 to yield 4.165%, or Treasuries plus 210 bps.
The new $2 billion 4.35% notes due Jan. 15, 2047 priced at 99.735 to yield 4.366%, or Treasuries plus 205 bps. The notes were talked in the 225 bps area over Treasuries.
BBVA, BofA Merrill Lynch and Credit Suisse were the bookrunners for the Securities and Exchange Commission-registered deal.
The sovereign will use the proceeds toward the redemption of part or all of its outstanding 5 5/8% notes due 2017.
| Issuer: | Mexico
|
| Amount: | $2.76 billion
|
| Description: | Notes
|
| Bookrunners: | BBVA, BofA Merrill Lynch, Credit Suisse
|
| Call options: | Make-whole call at Treasuries plus 30 bps
|
| Trade date: | Aug. 8
|
| Settlement date: | Aug. 11
|
| Expected ratings: | Moody's: A3
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| January 2026 tap
|
| Amount: | $760 million
|
| Maturity: | Jan. 21, 2026
|
| Coupon: | 4 1/8%
|
| Price: | 108.831
|
| Yield: | 3.042%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 165 bps area
|
| Original issue: | Priced at 99.676 to yield 210 bps over Treasuries
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | Jan. 15, 2047
|
| Coupon: | 4.35%
|
| Price: | 99.735
|
| Yield: | 4.366%
|
| Spread: | Treasuries plus 205 bps
|
| Price talk: | Treasuries plus 225 bps area
|
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