Mexico's America Movil begins exchange offer for Telmex's 5½% notes

By Angela McDaniels

Tacoma, Wash., Jan. 31 - America Movil, SAB de CV began a private exchange offer for Telefonos de Mexico, SAB de CV's $798.4 million of 5½% senior notes due 2015 and $500 million of 5½% senior notes due 2019, according to a 6-K filing with the Securities and Exchange Commission.

Holders are being offered new senior notes issued by America Movil and guaranteed by subsidiary Radiomovil Dipsa, SA de CV.

Holders will receive $980.69 principal amount of new 5¾% notes due 2015 in exchange for each $1,000 principal amount of 5½% notes due 2015 tendered by the early participation date, which is 5 p.m. ET on Feb. 16.

For each $1,000 principal amount of 5½% notes due 2019 tendered by that time, holders will receive $1,018.33 principal amount of new 5% notes due 2020.

The principal amount of exchange notes to be received will be $30.00 less for holders who tender after the early participation date.

The offer will expire at 5 p.m. ET on March 3.

America Movil said it will only accept the old Telmex notes of a series for exchange if at least a majority of the notes of that series is validly tendered by the early participation date.

The exchange offer is only being directed to noteholders who are qualified institutional buyers as defined in Rule 144A under the Securities Act or persons other than U.S. Persons as defined in Regulation S under the Securities Act outside the United States.

The new America Movil notes will be subject to certain restrictions on transfer.

America Movil is a telecommunications services provider based in Mexico City.

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