Mexico begins Dutch auction to exchange several notes series for 6¾% notes due 2034

By Jennifer Chiou

New York, Jan. 8 - The United Mexican States announced the start of a modified Dutch auction to exchange several series of its existing bonds for new reopened 6¾% global notes due Sept. 27, 2034.

Mexico will also pay cash for two series of notes.

Included notes series are Mexico's $2,025,434,000 of 8 1/8% global bonds due 2019, $1,049,193,000 of 8% global notes due 2022, $533.664 million of 11½% global bonds due 2026, $2,691,426,000 of 8.3% global notes due 2031 and $2,485,878,000 of 7½% global notes due 2033.

The 8 1/8% notes have a minimum clearing spread differential of 47 basis points, while the 8% notes have 33 bps, the 11½% bonds with 9 bps and the 8.3% notes have a cash payment of $240.00 and 7 bps, and the 7½% global notes due 2033 have a $370.00 cash payout and 6 bps.

The reopened 6¾% notes will be consolidated and form a single series with Mexico's outstanding $1.5 billion 6¾% notes due 2034.

The exchange ends at 5 p.m. ET on Jan. 11.

Mexico said there is no minimum or maximum amount of reopened notes that may be issued, adding that it may purchase up to $500 million of the old bonds.

The purchase price for each series of bonds will be determined at 9 a.m. ET on Jan. 12, using the U.S. Treasury 4.5% bond due Feb. 15, 2036.

Bondholder Communications Group is the information agent (212 809-2663). The dealer managers are Barclays Capital Inc. (866 307-8991 or call collect 212 412-4072) and Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-1864).

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