Mexico tenders for 16 series of notes amid concurrent debt offering

By Rebecca Melvin

New York, July 23 – Mexico has begun a cash tender offer for any and all of 16 series of notes, according to a news release on Tuesday.

The issuer is tendering for $932,584,000 of its 3½% global bonds due 2021 for a fixed price of $1,020.70 per bond. In addition, it is tendering for two groups of bonds with pricing based on a spread over the respective U.S. Treasuries reference price.

The notes being tendered from A tranche are:

• $1,343,671,000 of 8 1/8% bonds due 2019 at a spread of 0 basis points over Treasuries, or a hypothetical price of $1,025.08;

• $2,215,426,000 of 3 5/8% bonds due 2022 at a spread of 65 bps over Treasuries, or about $1,030.22;

• $611,193,000 of 8% bonds due 2022 at a spread of 72 bps over Treasuries, or about $1,165.70;

• $3,284,876,000 of 4% bonds due 2023 at a spread of 90 bps over Treasuries, or about $1,050.93;

• $2,453,564,000 of 3.6% bonds due 2025 at a spread of 121 bps over Treasuries, or about $1,029.66;

• $2,729,721,000 of 4.125% bonds due 2026 at a spread of 120 bps over Treasuries, or about $1,050.97; and

• $320,945,000 of 11½% bonds due 2026 at a spread of 160 bps over Treasuries, or about $1,468.79.

The third group referred to as tranche B of old notes includes:

• $1,158,045,000 of 8.3% bonds due 2031 at a spread of 185 bps over Treasuries, or about $1,420.13;

• $787,361,000 of 7½% bonds due 2033 at a spread of 205 bps over Treasuries, or about $1,353.95;

• $1,806,712,000 of 6¾% bonds due 2034 at a spread of 207 bps over Treasuries, or about $1,294.82;

• $3,317,359,000 of 6.05% bonds due 2040 at a spread of 186 bps over Treasures, or about $1,216.24;

• $4,463,324,000 of 4¾% bonds due 2044 at a spread of 186 bps over Treasuries, or about $1,047.46;

• $3 billion of 5.55% bonds due 2045 at a spread of 185 bps over Treasuries, or about $1,171.54;

• $3 billion of 4.6% bonds due 2046 at a spread of 191 bps over Treasuries, or about $1,018.34; and,

• $2 billion of 4.35% bonds due 2047 at a spread of 187 bps over Treasuries, or about $985.63.

Concurrently, with the tender offer, Mexico plans to price dual tranches of dollar global notes, including notes maturing in 2050 and a tap of its 2029 notes, according to a news release.

The 2029 notes will be consolidated to form a single series with its outstanding $2 billion 4½% notes due 2029 previously issued.

Mexico intends to purchase any and all 2021 notes that are validly tendered and accepted. In respect of the tranche A notes, Mexico will give preference to tendering holders who concurrently submit an indication of interest for the purchase of new 2029 notes, and in respect of the tranche B old notes, Mexico will give preference to tendering holders who concurrently submit an indication of interest for the purchase of the new 2050 notes.

BBVA Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC are joint lead underwriters for the new notes offering and dealer managers of the tender offer.

The tender offer expires 3 p.m. ET on July 23 and will settle on July 29. The new notes are expected to settle on July 31.

D. F. King & Co., Inc. (www.ums@dfking.com) is the information agent. Dealer managers are BBVA (212 728-2446 or 800 422-8692), Credit Suisse (212 538-2147 or 800 820-1653) and Goldman Sachs (212 902-6351 or 800 828-3182). The billing and delivering bank for this tender offer is Goldman Sachs.

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