Mexico conducts one-day capped tender offer for nine series of notes

By Marisa Wong

Los Angeles, April 20 – Mexico announced it began an offer to purchase for cash its outstanding notes from nine series, up to an aggregate maximum purchase amount, according to a press release Thursday morning.

The tender offer covers the following series:

• $3,107,574,000 outstanding 4.28% global notes due 2041 (Cusip: 91087BAQ3) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 195 basis points;

• $3,715,392,000 outstanding 4¾% global notes due 2044 (Cusip: 91086QBB3) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 206 bps;

• $2,764,306,000 outstanding 5.55% global notes due 2045 (Cusip: 91086QBE7) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 212 bps;

• $2,344,948,000 outstanding 4.6% global notes due 2046 (Cusip: 91086QBF4) with pricing based on the 3 7/8% U.S. Treasury due 2043 and a fixed spread of 210 bps;

• $1,459,599,000 outstanding 4.35% global notes due 2047 (Cusip: 91087BAB6) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 214 bps;

• $2,000,673,000 outstanding 4.6% global notes due 2048 (Cusip: 91087BAD2) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 220 bps;

• $2,256,638,000 outstanding 4½% global notes due 2050 (Cusip: 91087BAG5) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 210 bps;

• $2,481,041,000 outstanding 5% global notes due 2051 (Cusip: 91087BAL4) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 225 bps; and

• $2,885,590,000 outstanding 4.4% global notes due 2052 (Cusip: 91087BAS9) with pricing based on the 4% U.S. Treasury due 2052 and a fixed spread of 217 bps.

The tender offer was set to expire at noon ET on April 20 for non-preferred tenders and at 2 p.m. ET on the same day for preferred tenders.

Pricing was to be set at 4 p.m. ET on April 20.

Holders participating in the tender offer will also receive accrued interest to but excluding the settlement date.

Mexico said it will give preference to tendering holders who concurrently submit an indication of interest for the purchase of new dollar-denominated notes due 2053. The tender offer is conditioned on pricing of the new notes.

Mexico said it expects to announce on Friday the aggregate maximum purchase amount, the maximum purchase amount per series, the amount of preferred and non-preferred tenders of each series and any proration that may have occurred.

Settlement is scheduled to occur on April 26.

The dealer managers for the tender offer are Citigroup Global Markets Inc. (212 723-6106), HSBC Securities (USA) Inc. (888 HSBC-4LM), Mizuho Securities USA (866 271-7403) and Morgan Stanley & Co. LLC (800 624-1808).

The information agent is D. F. King & Co., Inc. (ums@dfking.com).

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