Mexico announces results from tender offers for 16 series of notes

By Rebecca Melvin

New York, July 24 – Mexico announced the results from cash tender offers for any and all of 16 series of notes, according to a news release on Wednesday.

The issuer has accepted $99.66 million principal amount of its 3½% global bonds due 2021, compared to $932,584,000 of the issue outstanding.

In addition, the issuer is tendering for a maximum amount of $1,281,147,000 principal amount of notes from a tranche of notes, known as tranche A, and a maximum amount of $1,175,073,000 principal amount of notes from tranche B.

Pricing of the tender for both groups of bonds is based on a spread over the respective U.S. Treasuries reference price.

The notes tendered from A tranche were:

• $1,673,000, or the full principal amount of preferred tenders, of 8 1/8% bonds due 2019;

• $292.19 million, or the full principal amount of preferred tenders, of 3 5/8% bonds due 2022;

• $350,000 of 8% bonds due 2022, which was less than the $520,000 preferred tender amount;

• $140.88 million of 4% bonds due 2023, which was the full principal amount of preferred tenders;

• $282.11 million of 3.6% bonds due 2025, which was the full principal amount of preferred tenders;

• $493,662,000 of 4 1/8% bonds due 2026, or the full principal amount of preferred tenders; and

• $500,000 of 11½% bonds due 2026, which was the full principal amount of preferred tenders.

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

• $1.15 million of 8.3% bonds due 2031, or the full principal amount of preferred tenders;

• $14,915,000 of 7½% bonds due 2033, or the full principal amount, of preferred tenders and $2.55 million of non-preferred tenders, which was the full amount;

• None of 6¾% bonds due 2034 compared to the preferred tender amount of $84,833,000, and none of the non-preferred amount of $1.3 million;

• $133,317,000 of 6.05% bonds due 2040, or the full preferred tender amount, and $114,807,000, which was the total non-preferred tender amount;

• $377,263,000 of 4¾% bonds due 2044, which was the full preferred tender amount, and $14,996,000 of non-preferred tenders, which was the full amount;

• $182,324,000 of 5.55% bonds due 2045, or the full preferred amount, and $21,545,000 of non-preferred tenders, or the full amount;

• $142 million of 4.6% bonds due 2046, or the full preferred amount, and $1,242,000 non-preferred tenders, which was the full amount; and,

• $168,339,000 of 4.35% bonds due 2047, which was the full preferred amount, and $830,000 of non-preferred tender amount, which was the full amount.

Concurrently, with the tender offer, Mexico priced $3 billion of dollar global notes in dual tranches, 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.

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 expired 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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