Mexico offers to buy back up to $5 billion of foreign currency bonds

By Reshmi Basu

New York, Feb. 23 - The United Mexican States said it would offer to buy back up to $5 billion of foreign currency bonds via a modified Dutch auction.

Mexico is offering to pay cash for 25 different bonds, which are denominated in dollars, euros and sterling pounds. Maturities range from 2007 and 2033.

Additionally, Mexico said it would not purchase more than 20% of the amount outstanding on each bond.

The tender offer will expire at 4:15 p.m. ET on March 2.

The results will be announced at 5 p.m. ET on March 3 or soon after.

A new issuance of dollar-denominated bonds will fund the repurchase, according to a market source.

The bonds include:

• $1.407 billion of 9 7/8% global bonds due 2007;

• €222 million of 9 11/8% notes due 2007;

• $1.39 billion of 8 5/8% global bonds due 2008;

• $1.5 billion of 4 5/8% global notes due 2008;

• €750 million of 7 3/8% notes of 2008;

• €383 million of 8% bonds of 1997/2008;

• $1.803 billion of 10 3/8% global bonds due 2009;

• €767 million of 8¼% bonds of 1997/2009;

• $2 billion of 9 7/8% notes due 2010;

• €1 billion of 7½% notes due 2010;

• $2.5 billion of 8 3/8% global notes due 2011;

• $1.5 billion of 7½% global notes due 2012;

• $2 billion of 6 3/8% global notes due 2013;

• €381.67 million of 10% step-down notes due 2013;

• €750 million of 5 3/8% global notes due 2013;

• $1.79 billion of 5 7/8% global notes due 2014;

• $2 billion of 6 5/8% global notes due 2015;

• $2.39 billion of 11 3/8% global bonds due 2016;

• €258 million of 11% notes due 2017;

• $2.46 billion of 8 1/8% global notes due 2019;

• $1.16 billion of 8% global notes due 2022;

• £500 million of 6¾% notes due 2024;

• $539 million of 11½% global bonds due 2026;

• $2.93 billion of 8.30% global notes due 2031; and

• $2.88 billion of 7½% global notes due 2033.

D.F. King & Co., Inc. is information agent (banks and brokers call collect 212 269-5550; others call 800 431-9633).

Dealer managers are Goldman Sachs (800 828-3182 or call collect 212 902-8194) and Morgan Stanley (800 624-1808 or call collect 212 761-1864).

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