By Paul A. Harris
Portland, Ore., Oct. 16 – Mexican state oil company Petroleos Mexicanos SAB de CV (Pemex) (Baa3/BBB+/BBB+) priced a $2 billion issue of 6½% senior notes due January 2029 at a 335 basis points spread to Treasuries on Tuesday, according to market sources.
The long 10-year deal was multiple times oversubscribed and came tight to spread talk in the 340 bps area, sources said.
Initial price talk was in the Treasuries plus 365 bps area.
Joint bookrunner HSBC will bill and deliver. JPMorgan, Scotia and UBS were also joint bookrunners.
Proceeds will be used to finance the company's investment program and for working capital, as well as to repurchase or refinance debt,
| Issuer: | Petroleos Mexicanos SAB de CV (Pemex)
|
| Guarantors: | Pemex Exploracion y Produccion, Pemex Transformacion Industrial, Pemex Perforacion y Servicios and Pemex Logistica
|
| Amount: | $2 billion
|
| Maturity: | January 2029
|
| Securities: | Senior notes
|
| Bookrunners: | HSBC (bill and deliver), JPMorgan, Scotia, UBS
|
| Coupon: | 6½%
|
| Price: | 99.954
|
| Yield: | 6.508%
|
| Spread: | 335 bps
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 23
|
| Issuer ratings: | Moody's: Baa3
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | Treasuries plus 340 bps
|
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