Chicago, Aug. 10 – Petroleos Mexicanos SAB de CV (Pemex) gave the final terms on $1,984,688,669 of 8¾% notes due 2029 (Ba3/BBB) that were issued under the company’s series C medium-term note program.
The notes are guaranteed by subsidiaries Pemex Exploracion y Produccion, Pemex Transformacion Industrial and Pemex Logistica.
The issuance of the notes constituted a remarketing of an issue from earlier in the year.
The notes were originally issued to noteholders on May 31 at par, as compensation for accounts payable to large suppliers. The issue was a move to exchange commercial debt for financial debt, according to a lawyer for the transaction.
The exchange was on a dollar-for-dollar basis.
Those noteholders resold the notes in two tranches with the help of Citigroup Global Markets, Inc. as remarketing agent and initial purchaser.
A first tranche for $1.5 billion was remarketed by the original holders at 97.602 (plus interest from the original June 2 issue date) on June 9.
A second tranche for $288,053,435 was remarketed on July 7 at 87.
Notes priced with a 97.602 OID yield 9¼%.
Principal payments on the notes will be made in two installments, first on June 2, 2028, a year before the maturity date, and then on the maturity date.
The notes have a par call two months before the maturity date. For taxation reasons, the notes could also be redeemed early.
The notes are listed on the Luxembourg Stock Exchange.
Pemex did not receive any proceeds from the sale of the notes.
The issuer is the most indebted oil company in the world with debt over $100 billion.
International debt maturing in year 2022 totals $15.51 billion with another $8.41 in local currency debt.
Another $17.21 billion of international debt matures between 2023 and 2025, according to a report published in the first quarter of 2022.
Pemex is a Mexico City-based state-owned oil and gas company.
| Issuer: | Petroleos Mexicanos SAB de CV
|
| Guarantors: | Pemex Exploracion y Produccion, Pemex Transformacion Industrial and Pemex Logistica
|
| Amount: | $1,984,688,669
|
| Issue: | Notes
|
| Maturity: | June 2, 2029
|
| Agent: | Citigroup Global Markets, Inc.
|
| Trustee: | Deutsche Bank Trust Co. Americas
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and in-house counsel
|
| Counsel to underwriters: | Shearman & Sterling LLP and Ritch, Mueller y Nicolau, SC
|
| Coupon: | 8¾%
|
| Price: | 97.602 (for U.S. tax purposes)
|
| Yield: | 9¼%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until two months before the maturity date; thereafter callable at par
|
| Trade date: | May 31
|
| Settlement date: | June 2
|
| Ratings: | Moody’s: Ba3
|
| S&P: BBB
|
| Distribution: | Rule 144A and Regulation S
|
| Cusips: | 71654QDJ8, 71654QDJ8, 71654QDJ8
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