Mexico sets tender cap for six series at $1.47 billion, prices offer

By Marisa Wong

Los Angeles, Jan. 7 – Mexico has set the maximum purchase amount of its cash tender offer for notes from six series at $1,471,373,000, according to a press release.

The offer began at the market open on Jan. 6 and expired at noon ET on the same day for non-preferred tenders and at 3 p.m. ET on Monday for preferred tenders.

Mexico accepted for purchase the following notes, listed with the purchase price per $1,000 principal amount:

• $141.05 million of the $1,903,536,000 outstanding 3 5/8% global bonds due 2022, including $69,714,000 of $69,764,000 preferred tenders and all $71,336,000 of non-preferred tenders, at $1,037.60, based on the 2 3/8% U.S. Treasury due March 15, 2022 and a fixed spread of 30 basis points;

• $144,448,000 of the $3,117,678,000 outstanding 4% global bonds due 2023, including all $134,326,000 of preferred tenders and all $10,122,000 of non-preferred tenders, at $1,058.08, based on the 1 5/8% U.S. Treasury due Dec. 15, 2022 and a fixed spread of 80 bps;

• $206,716,000 of the $2,153,690,000 outstanding 3.6% global bonds due 2025, including $203,951,000 of $204,106,000 preferred tenders and all $2,765,000 of non-preferred tenders, at $1,052.96, based on the 1¾% U.S. Treasury due Dec. 31, 2024 and a fixed spread of 87 bps;

• $62,361,000 of the $2,230,059,000 outstanding 4 1/8% global bonds due 2026, including $55,451,000 of $55,576,000 preferred tenders and all $6.91 million of non-preferred tenders, at $1,074.85, based on the 1¾% U.S. Treasury due Dec. 31, 2024 and a fixed spread of 116 bps;

• $425,475,000 of the $3,150,415,000 outstanding 4.15% global bonds due 2027, including all $374,494,000 of preferred tenders and all $50,981,000 of non-preferred tenders, at $1,078.59, based on the 1¾% U.S. Treasury due Jan. 15, 2029 and a fixed spread of 112 bps; and

• $171,158,000 of the $2,555,196,000 outstanding 3¾% global bonds due 2028, including all $389,879,000 of preferred tenders and all $101,444,000 of non-preferred tenders, at $1,048.46, based on the 1¾% U.S. Treasury due Jan. 15, 2029 and a fixed spread of 125 bps.

Pricing was set around 5 p.m. ET on Jan. 6.

Holders will also receive any accrued interest up to but excluding the settlement date, which is scheduled to occur on Jan. 13.

Mexico had said it will give preference to tendering holders who concurrently submit an indication of interest for the purchase of new notes.

Mexico priced on Monday $3.05 billion of new 3¼% global notes due 2030 and additional $800 million of 4½% notes due 2050.

D. F. King & Co., Inc. (ums@dfking.com) is the information agent for the tender offer.

BBVA Securities Inc. (212 728-2446 or 800 422-8692), Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653) and Goldman Sachs & Co. LLC (212 357-1452 or 800 828-3182) are dealer managers.

Goldman Sachs is the billing and delivery bank.

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