Mexico prices one-day cash tender for six note series on Wednesday

By Susanna Moon

Chicago, Jan. 4 – The United Mexican States priced its one-day cash tender for six series of notes that ran on Wednesday until noon ET for non-preferred tenders and 4 p.m. ET for preferred tenders.

The maximum purchase amount was expected to be announced later on Thursday, according to an issuer announcement. Settlement has been set for Jan. 9.

For five series of notes, pricing was set at 5 p.m. ET on Jan. 3 using a reference security plus a fixed spread for a purchase price for each $1,000 principal amount as follows:

• $1,343,671,000 of 8 1/8% global bonds due 2019 with purchase price of $1,116.33 using the 1¾% U.S. Treasury note due Nov. 30, 2019 plus 15 basis points for a reference rate of 1.932%;

• $2,471,606,000 of 3 5/8% global bonds due 2022 with purchase price of $1,038.50 based on the 2 1/8% U.S. Treasury note due Dec. 31, 2022 plus 40 bps for a reference rate of 2.246%;

• $3,449,928,000 of 4% global bonds due 2023 with purchase price of $1,047.63 based on the 2 1/8% U.S. Treasury note due Dec. 31, 2022 plus 84 bps for a reference rate of 2.246%;

• $2,472,863,000 of 3.6% global bonds due 2025 with purchase price of $1,013.57 based on the 2¼% U.S. Treasury note due Nov. 15, 2027 plus 93 bps for a reference rate of 2.452%; and

• $2,796,000,000 of 4 1/8% global bonds due 2026 with purchase price of $1,043.29 based on the 2¼% U.S. Treasury note due Nov. 15, 2027 plus 105 bps for a reference rate of 2.452%.

For the $1 billion of 3½% global bonds due 2021, the purchase price will be $1,035.08 for each $1,000 principal amount, as previously announced.

The information agent is D. F. King & Co., Inc. (212 269-5550 or 866 864-7961, dfking.com/ums or ums@dfking.com).

The dealer managers are BBVA Securities Inc. (212 728-2446 or 800 422-8692), J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) and billing and delivering bank BofA Merrill Lynch (646 855-8988 or 888 292-0070).

Mexico also priced a global offering of notes due 2028 and 2048 to be denominated in dollars that may include notes that may be issued to some tendering holders in the tender offer.

As reported, Mexico priced $2.6 billion of new 10-year global notes and a tap of its 4.6% global notes due 2048 on Jan. 3.

The $2 billion 3¾% notes due 2028 priced at 99.571 to yield 3.802%, or Treasuries plus 135 bps.

The deal also included a $600 million tap of the issuer’s 4.6% notes due 2048, which priced at 98.493 to yield 4.694%, or Treasuries plus 190 bps.

The 2048 notes will be consolidated and form a single series with the $1.88 billion 4.6% global notes due 2048 previously issued by Mexico.

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