Mexico begins capped tender offers from $26.01 billion of bonds

Chicago, Nov. 16 – Mexico started capped tender offers from an aggregate combination of $26,013,604,000 of old notes, according to an offer notice.

There are two capped offers inclusive of a total of 11 series.

The offers are divided into a tranche A offer and a tranche B offer.

Mexico is planning a new offering of notes, the details of which will be announced after market close on Nov. 16. There will be two tranches, one tranche due 2031 and one series due 2061.

The caps for the tender offers will be announced on Nov. 17. Settlement is expected for Nov. 19.

The offers are subject to proration.

Preferred tenders

Noteholders who wish to submit an indication of interest for new notes in an amount equal to the value of their old notes will be considered as preferred tenders.

The tranche A offer is connected to new notes with a 2031 maturity. And, the tranche B offer is linked to notes with a maturity of 2061.

Non-preferred tenders include tenders that are submitted without an indication of interest in the new notes, notes that are submitted after the expiration period or are submitted with an indication of interest that is greater or less than the tender value of the old notes being tendered.

The offer period for non-preferred tenders ends at 12 p.m. ET on Nov. 16.

The preferred tender period ends at 2 p.m. ET on Nov. 16.

Tranche A offer

The tranche A offer will cover the following bonds:

• The $2,968,200,000 outstanding 4% global bonds due 2023 (ISIN: US91086QBC15) to be priced using the ¼% U.S. Treasury due Nov. 15, 2023 plus a fixed spread of 50 basis points;

• The $1,943,434,000 outstanding 3.6% global bonds due 2025 (ISIN: US91087BAA89) to be priced using the ¼% U.S. Treasury due Oct. 31, 2025 plus a fixed spread of 90 bps;

• The $1 billion outstanding 3.9% global bonds due 2025 (ISIN: US91087BAJ98) to be priced using the ¼% U.S. Treasury due Oct. 31, 2025 plus a fixed spread of 90 bps;

• The $2,167,698,000 outstanding 4 1/8% global bonds due 2026 (ISIN: US91086QBG29) to be priced using the ¼% U.S. Treasury due Oct. 31, 2025 plus a fixed spread of 105 bps;

• The $2,724,940,000 outstanding 4.15% global bonds due 2027 (ISIN: US91087BAC46) to be priced using the 7/8% U.S. Treasury due Nov. 15, 2030 plus a fixed spread of 95 bps;

• The $2,063,873,00 outstanding 3¾% global bonds due 2028 (ISIN: US91087BAE02) to be priced using the 7/8% U.S. Treasury due Nov. 15, 2030 plus a fixed spread of 120 bps; and

• The $3,069,068,000 outstanding 3¼% global bonds due 2030 (ISIN: US91087BAH33) to be priced using the 7/8% U.S. Treasury due Nov. 15, 2030 plus a fixed spread of 155 bps.

Tranche B offer

The offer for tranche B notes will cover the following notes:

• The $2,816,759,000 outstanding 4.6% global bonds due 2046 (ISIN: US91086QBF46) to be priced using the 1 3/8% U.S. Treasury due Aug. 15, 2050 plus a fixed spread of 195 bps;

• The $1,830,831,000 outstanding 4.35% global bonds due 2047 (ISIN: US91087BAB62) to be priced using the 1 3/8% U.S. Treasury due Aug. 15, 2050 plus a fixed spread of 195 bps;

• The $2,525,274,000 outstanding 4.6% global bonds due 2048 (ISIN: US91087BAD29) to be priced using the 1 3/8% U.S. Treasury due Aug. 15, 2050 plus a fixed spread of 200 bps; and

• The $2,903,527,000 outstanding 4½% global bonds due 2050 (ISIN: US91087BAG59) to be priced using the 1 3/8% U.S. Treasury due Aug. 15, 2050 plus a fixed spread of 195 bps.

Details

Dealer managers for the offer are BBVA (212 728-2446, 800 422-8692), Goldman Sachs & Co. LLC (212 357-1452, 800 828-3182) and Mizuho Securities (866 271-7403, 212 205-7736).

Billing and delivery is being done by Goldman Sachs.

D.F. King & Co., Inc. is the information agent (212 269-5550, 800 848-3416, www.dfking.com/ums).

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