CFE gives early results, pricing of capped tender for four notes

By Mary-Katherine Stinson and Wendy Van Sickle

Lexington, Ky., Sept. 12 – Mexico’s Comision Federal de Electricidad (CFE) announced the pricing and the early results and acceptance amounts of its tender offer to purchase for cash notes from four series for an aggregate purchase price, excluding interest, of up to $1 billion, according to a release.

CFE reports it intends to accept for purchase all the notes tendered by the early deadline, which are listed in order of acceptance priority level with their early tender considerations per $1,000 principal amount:

• $479,703,000 of the $869,688,000 outstanding 4 7/8% notes due 2024 (Cusip: 200447AD2, P30179AM0), for $997.69, based on the 1/8% U.S. Treasury due Jan. 15, 2024 and a fixed spread of 0 basis points;

• $324,914,000 of the $814,968,000 outstanding 4¾% notes due 2027 (Cusip: 200447AF7, P29595AB4), for $971.96, based on the 4 1/8% U.S. Treasury due July 31, 2028 and a fixed spread of 120 bps;

• $15,971,000 of the $618,308,000 outstanding 6 1/8% notes due 2045 (Cusip: 200447AE0, P30179AR9), for $865.92, based on the 4 3/8% U.S. Treasury due Aug. 15, 2043 and a fixed spread of 280 bps; and

• $53,179,000 of the $563.71 million outstanding 5¾% notes due 2042 (Cusip: 200447AC4, P30179AK4), for $851.47, based on the 4 3/8% U.S. Treasury due Aug. 15, 2043 and a fixed spread of 265 bps.

The company also reported that all the conditions that were to be satisfied or waived on or prior to the early tender date have been met.

Holders who tendered their notes at or before the early tender date will be eligible to receive the early tender consideration, which includes an early tender premium of $50 per $1,000 principal amount. Holders tendering after the early tender date will only be eligible to receive the late tender consideration, which is equal to the early tender consideration less the early tender premium.

The company will also pay accrued interest.

Tendered notes will be accepted in order of acceptance priority level, subject to the offer cap and to proration. Early tendered notes have priority in acceptance over any notes tendered after the early deadline, regardless of acceptance priority level.

The offer is not conditioned on any minimum amount being tendered.

The early tender date was 5 p.m. ET on Sept. 11. Tenders could be withdrawn prior to that time.

Pricing was set at 10 a.m. ET on Sept. 12.

The early settlement date will be on Sept. 14.

The offer expires at 5 p.m. ET on Sept. 26.

Final settlement is expected to be on or prior to the second business day following the expiration date.

BNP Paribas Securities Corp. (dl.us.liability.management@us.bnpparibas.com; 888 210-4358, 212 841-3059), Citigroup Global Markets Inc. (ny.liabilitymanagement@citi.com; 800 558-3745, 212 723-6106), Morgan Stanley & Co. LLC (800 624-1808; 212 761-1057) and SMBC Nikko Securities America, Inc. (liabilitymanagement@smbcnikko-si.com; 888 284-9760, 212 224-5163) are dealer managers for the offer.

The tender agent is Global Bondholder Services Corp. (855 654-2015 or 212 430-3774).

The state-owned electric utility is based in Mexico City.

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