Pemex plans new notes in reopening of 2027, 2047 securities

New York, July 11 – Petroleos Mexicanos plans to price new bonds on Tuesday that will represent reopenings of its exiting 2027 and 2027 bond tranches, according to a syndicate source.

The initial price talk on the 2027 bonds is for yield in the 6% area, and the talk for the 2047 bonds is for a yield in the low 7% range.

The new notes are being issued concurrently with a tender offer for its $1,758,330,000 of outstanding 5¾% notes due March 1, 2018, its $1 billion of outstanding 3½% notes due July 18, 2018 and its $500 million of outstanding 3 1/8% notes due Jan. 23, 2019.

Pemex is offering to pay $1,025.43 per $1,000 principal amount for the 5¾% notes, $1,018.51 per $1,000 principal amount for the 3½% notes and $1,012.00 per $1,000 principal amount for the 3 1/8% notes, according to a news release.

The tender ends at 5 p.m. ET on July 18. Settlement is planned for July 21.

Funding for the offer will come from the sale of new bonds due 2027 and 2047.

Proceeds from the new debt will also be used to finance Pemex’s investment program.

The tender is conditioned on completion of the sale of the new bonds.

BBVA Securities Inc. HSBC Securities (USA) Inc. J.P. Morgan Securities LLC and Santander Investment Securities Inc. are bookrunners for the new paper.

Pemex is a Mexico City-based oil and gas company.

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