Femsa gives early results, pricing of tender offers for four notes

By Marisa Wong

Los Angeles, March 3 – Fomento Economico Mexicano SAB de CV (Femsa) announced the early results and pricing for its Feb. 17 cash tender offers for four series of notes, up to a $2 billion aggregate purchase price, according to Thursday and Friday press releases.

As of the early tender time at 2 a.m. ET on March 3, holders had tendered the following notes, listed in order of acceptance priority level:

• $942,854,000 of the $2.5 billion outstanding 3½% senior notes due 2050 with a first par call date on July 16, 2049 (Cusip: 344419AC0), all of which were accepted for purchase for a total consideration of $752.78 per $1,000 principal amount, with the purchase price based on the 4% U.S. Treasury due Nov. 15, 2052 and a fixed spread of 120 basis points;

• $146.75 million of the $700 million outstanding 4 3/8% senior notes due 2043 (Cusip: 344419AB2), all of which were accepted for purchase for a total consideration of $869.57 per $1,000 principal amount, with the purchase price based on the 4% U.S. Treasury due Nov. 15, 2042 and a fixed spread of 120 bps;

• €387,971,000 of the €700 million outstanding ½% senior notes due 2028 (ISIN: XS2337285519), all of which were accepted for purchase for a total consideration of €848.76 per €1,000 principal amount, with the purchase price based on the 2028 interpolated mid-swap rate and a fixed spread of 30 bps (previously listed as 70 bps); and

• €255,138,000 of the €500 million outstanding 1% senior notes due 2033 (ISIN: XS2337285865), all of which were accepted for purchase for a total consideration of €751.49 per €1,000 principal amount, with the purchase price based on the 2033 interpolated mid-swap rate plus a fixed spread of 70 bps (instead of 30 bps).

Pricing was calculated at 11 a.m. ET on March 2.

The total consideration includes a $30 or €30 early tender premium that will not be paid to noteholders who tender after the early tender deadline.

Interest will be paid to the initial settlement date, which is expected to be March 7.

Tenders may no longer be withdrawn.

Tenders may be prorated.

The offers expire at 11:59 p.m. ET on March 16.

Final settlement is planned for March 20.

The offers are conditioned on Femsa successfully borrowing enough proceeds under a dollar-denominated credit agreement that was to be executed on Feb. 16, with cash on hand, to fund the tender offer. In Friday’s press release, the company said all conditions that were to be satisfied or waived by the early tender time have been met or waived.

BofA Securities, Inc. is the dealer manager (888 292-0070, 646 855-8988, +44 20 7996 5420).

Global Bondholder Services Corp. is the tender and information agent (212 430-3774, 855 654-2014).

Femsa is a Monterrey, Mexico-based beverage and retail company.

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