By Rebecca Melvin
New York, July 11 – Petroleos Mexicanos SAB de CV priced $5 billion of senior notes on Tuesday in two equal tranches, reopening its 6½% notes due 2027 and 6¾% notes due 2047, according to a syndicate source.
The Mexican state-owned oil company priced $2.5 billion of the 2027 notes at 105.487 to yield 5¾%. The yield printed tighter than talk at 6%.
Pemex also priced $2.5 billion of the 2047 notes at 98.094 to yield 6.9%, which was below yield talk in the low 7% range.
The new bonds add to $3 billion of the 6½% notes, which originally priced Dec. 6, 2016, and the $2 billion of 6¾% notes, which originally priced in September 2016. Those deals are now $5.5 billion and $4.5 billion in size, respectively.
Proceeds of the new notes will be used to fund buybacks of three near-dated maturities, as well as to finance Pemex’s investment program.
The bond tenders are for $1,758,330,000 of outstanding 5¾% notes due March 1, 2018, $1 billion of outstanding 3½% notes due July 18, 2018 and $500 million of outstanding 3 1/8% notes due Jan. 23, 2019.
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.
| Issuer: | Petroleos Mexicanos SAB de CV
|
| Amount: | $5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BBVA Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Santander Investment Securities Inc.
|
| Trade date: | July 11
|
| Settlement date: | July 18
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2027 notes
|
| Amount: | $2.5 billion
|
| Maturity: | 2027
|
| Coupon: | 6½%
|
| Price: | 105.487
|
| Yield: | 5¾%
|
| Price talk: | 6%
|
| Total deal size: | $5.5 billion, including $3 billion priced on Dec. 6, 2016
|
|
|
| 2047 notes
|
| Amount: | $2.5 billion
|
| Maturity: | Sept. 21, 2047
|
| Coupon: | 6¾%
|
| Price: | 98.094
|
| Yield: | 6.9%
|
| Price talk: | Low 7% range
|
| Total deal size: | $4.5 billion, including $2 billion priced in September 2016
|
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