Mexico to pay $2 billion in one-day tender for 10 series of notes

New York, Jan. 13 – Mexico said it will pay a total of $2 billion to buy back notes in its one-day tender offer for 10 series of its debt.

The sovereign will pay $500 million for notes in the tranche A offer and $1.5 billion for notes in the tranche B offer.

Because the offer was oversubscribed at these maximum amounts, preferred tenders were pro-rated and no non-preferred tenders were accepted. Preferred tenders were those submitted with orders to participate in the concurrent sale of $4 billion of new notes.

The tender offer began at 7:45 a.m. ET on Jan. 12 and expired at 4 p.m. the same day, with settlement set for Jan. 20, according to a press release.

Mexico also announced pricing for the tender offer, which was set using a yield to maturity based on the bid-side price of the reference U.S. Treasury security and a fixed spread.

The amounts tendered and accepted and the pricing for tranche A was as follows:

• For the $1,585,706,000 11 3/8% global bonds due 2016, $53,316,000 preferred tenders were received and none accepted. The purchase price was $1,176.03, set using the 5/8% Treasury note due Dec. 31, 2016 plus 10 basis points;

• For the $2,838,533,000 5 5/8% global bonds due 2017, $77.9 million preferred tenders were received and all were accepted. The purchase price was $1,085.55, set using the 5/8% Treasury note due Dec. 31, 2016 plus 75 bps;

• For the $1,930,236,000 5.95% global bonds due 2019, $286,718,000 preferred tenders were received and all were accepted. The purchase price was $1,142.74, set using the 1 5/8% Treasury note due Dec. 31, 2019 plus 95 bps;

• For the $2,002,724,000 5 1/8% global bonds due 2020, $187,016,000 preferred tenders were received and $79,912,000 was accepted. The purchase price was $1,120.24, set using the 1 5/8% Treasury note due Dec. 31, 2019 plus 116 bps; and

• For the $611,193,000 8% global bonds due 2022, $23,099,000 preferred tenders were received and none were accepted. The purchase price was $1,341.36, set using the 2¼% Treasury note due Nov. 15, 2024 plus 108 bps.

Holders will also receive accrued interest.

The amounts tendered and accepted and the pricing for tranche B was as follows:

• For the $320,945,000 of 11½% global bonds due 2026, no preferred tenders were received. The purchase price was $1,715.78, set using the 3 1/8% Treasury note due Aug. 15, 2044 plus 120 bps;

• For the $1,179,352,000 8.3% global bonds due 2031, $21,307,000 of preferred tenders were received and all were accepted. The purchase price was $1,533.09, set using the 3 1/8% Treasury note due Aug. 15, 2044 plus 140 bps;

• For the $823,461,000 7½% global bonds due 2033, $36.1 million of preferred tenders were received and all were accepted. The purchase price was $1,420.17, set using the 3 1/8% Treasury note due Aug. 15, 2044 plus 168 bps;

• For the $2,312,412,000 6¾% global bonds due 2034, $505.7 million of preferred tenders were received and all were accepted. The purchase price was $1,342.28, set using the 3 1/8% Treasury note due Aug. 15, 2044 plus 168 bps; and

• For the $3,906,147,000 6.05% global bonds due 2040, $1,656,914,000 of preferred tenders were received and $588,788,000 were accepted. The purchase price was $1,251.88, set using the 3 1/8% Treasury note due Aug. 15, 2044 plus 188 bps.

The tender offer was conditioned upon the pricing of the issue of additional new notes due 2025 and 2046 on Monday.

The dealer managers are BofA Merrill Lynch (attn: debt advisory services, 888 292-0070), Credit Suisse (attn: liability management group, 800 820-1653) and Morgan Stanley (attn: liability management group, 800 624-1808 or outside the United States, call collect 212 761-1057).

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

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