Mexico conducts one-day switch tender offer for 12 notes

Chicago, Aug. 8 – Mexico started a cash switch tender offer for a capped amount of notes from 12 series on Monday, according to a press release.

The tender offer expires at 2 p.m. ET on Aug. 8.

Tendering holders must submit an indication of interest for the purchase of new notes that are pricing on Monday. Noteholders must submit a firm bid for an amount certain of new notes at an indicated spread over the applicable Treasury bond yield.

Old notes

The following notes are part of the tender offer:

• $1,705,644,000 outstanding 6¾% global notes due 2034 (Cusip: 91086QAS7) with pricing to be based on the 2 7/8% U.S. Treasury due 2032 and a fixed spread of 235 basis points for a hypothetical consideration of $1,138.94;

• $2,842,853,000 outstanding 6.05% global notes due 2040 (Cusip: 91086QAV0) with pricing to be based on the 3¼% U.S. Treasury due 2042 and a fixed spread of 249 bps for a hypothetical consideration of $1,029.32;

• $3,256,899,000 outstanding 4.28% global notes due 2041 (Cusip: 91087BAQ3) with pricing to be based on either the Feb. 14, 2041 par call date or the maturity date if the repurchase yield is respectively either less than or more than the contracted annual rate of interest using the 3¼% U.S. Treasury due 2042 and a 243 bps fixed spread for a hypothetical consideration of $834.48;

• $3,725,936,000 outstanding 4¾% global notes 2044 (Cusip: 91086QBB3) with pricing to be based on the 3¼% U.S. Treasury due 2042 and a fixed spread of 246 bps for a hypothetical consideration of $877.27;

• $2,764,306,000 outstanding 5.55% global notes due 2045 (Cusip: 91086QBE7) with pricing to be based on the 3¼% U.S. Treasury due 2042 and a fixed spread of 253 bps for a hypothetical consideration of $966.37;

• $2,349,130,000 outstanding 4.6% global notes due 2046 (Cusip: 91086QBF4) with pricing to be based on the 2¼% U.S. Treasury due 2052 and a fixed spread of 268 bps for a hypothetical consideration of $849.28;

• $1,469,746,000 outstanding 4.35% global notes 2047 (Cusip: 91087BAB6) with pricing to be based on the 2¼% U.S. Treasury due 2052 and a fixed spread of 269 bps for a hypothetical consideration of $812.75;

• $2,010,789,000 outstanding 4.6% global notes due 2048 (Cusip: 91087BAD2) with pricing to be based on the 2¼% U.S. Treasury due 2052 and a fixed spread of 271 bps for a hypothetical consideration of $839.88;

• $2,284,249,000 outstanding 4½% global notes 2050 (Cusip: 91087BAG5) with pricing to be based on either the July 31, 2049 par call date or the maturity date if the repurchase yield is respectively either less than or more than the contracted annual rate of interest using the 2¼% U.S. Treasury due 2052 and a 276 bps fixed spread for a hypothetical consideration of $815.18;

• $2.5 billion outstanding 5% global notes due 2051 (Cusip: 91087BAL4) with pricing to be based on either the Oct. 27, 2050 par call date or the maturity date if the repurchase yield is respectively either less than or more than the contracted annual rate of interest using the 2¼% U.S. Treasury due 2052 and a 274 bps fixed spread for a hypothetical consideration of $883.39;

• $2,931,198,000 outstanding 4.4% global notes due 2052 (Cusip: 91087BAS9) with pricing to be based on either the Aug. 12, 2051 par call date or the maturity date if the repurchase yield is respectively either less than or more than the contracted annual rate of interest using the 2¼% U.S. Treasury due 2052 and a 272 bps fixed spread for a hypothetical consideration of $800.71;

• $3,208,201,000 outstanding 3.771% global notes due 2061 (Cusip: 91087BAN0) with pricing to be based on either the Nov. 24, 2060 par call date or the maturity date if the repurchase yield is respectively either less than or more than the contracted annual rate of interest using the 2¼% U.S. Treasury due 2052 and a fixed spread of 253 bps for a hypothetical consideration of $707.85;

In all instances, noteholders will receive accrued interest up to the settlement date.

2025 notes

After the switch tender offer, Mexico plans to redeem part or all of its 3.6% global notes due 2025.

Details

Pricing for the tender offer will be determined at or around 4 p.m. ET on Aug. 8.

Settlement of the tender offer is planned for Aug. 15. Settlement of the new notes offer is expected for Aug. 19.

Tenders may be prorated.

Goldman Sachs & Co. LLC is the billing and delivering bank for the switch tender offer.

The dealer managers are BBVA Securities Inc. (212 728-2446), Goldman Sachs & Co. LLC (212 357-1452), J.P. Morgan Securities LLC (212 834-7279) and Natixis Securities Americas LLC (212 698-3108).

D.F. King & Co., Inc. is the information agent for the offer (877 674-6723, 212 269-5550, www.dfk-ing.com/ums, ums@dfking.com).

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