Mexico holds one-day cash tender for 10 series of notes on Thursday

By Susanna Moon

Chicago, March 16 – The United Mexican States was set to run a one-day cash tender offer for several series of its outstanding notes on Thursday.

Mexico expects to set the maximum purchase amount and pricing of preferred and non-preferred tenders at 9 a.m. ET on March 17, with settlement set to follow on March 23.

The purchase price for the $1,643,518,000 of 5.95% global bonds due 2019 was set at $1,080.56 for each $1,000 principal amount.

Pricing for the other notes covered by the offer will be set using a reference security plus a fixed spread.

For two series of notes, pricing will be set using the 1.625% Treasury note due March 15, 2020 plus a spread for a hypothetical purchase price for each $1,000 principal amount as follows:

• $1,343,671,000 8 1/8% global bonds due 2019 will price using a spread of 0 basis points for a hypothetical purchase price of $1,176.33; and

• $1,922,812,000 5.125% global bonds due 2020 will price using a spread of 60 bps for a hypothetical purchase price of $1,079.56.

For four note series, pricing will be set using the 1.875% Treasury note due Feb. 28, 2022 plus a spread for a hypothetical purchase price for each $1,000 principal amount as follows:

• $1 billion of 3½% global bonds due 2021 will price using a spread of 68 bps for a hypothetical purchase price of $1,029.32;

• $2,559,254,000 of 3 5/8% global bonds due 2022 will price using a spread of 119 bps for a hypothetical purchase price of $1,019.50;

• $611,193,000 of 8% global bonds due 2022 will price using a spread of 130 bps for a hypothetical purchase price of $1,234.29; and

• $3,877,000,000 of 4% global bonds due 2023 will price using a spread of 163 bps for a hypothetical purchase price of $1,020.85.

For three note series, pricing will be set using the 2.25% Treasury note due Feb. 15, 2027 plus a spread for a hypothetical purchase price for each $1,000 principal amount as follows:

• $2,921,000,000 of 3.6% global bonds due 2025 will price using a spread of 128 bps for a hypothetical purchase price of $987.97;

• $2,796,000,000 of 4.125% global bonds due 2026 will price using a spread of 138 bps for a hypothetical purchase price of $1,018.27; and

• $320,945,000 of 11.500% global bonds due 2026 will price using a spread of 157 bps for a hypothetical purchase price of $1,562.70.

The tender was set to end at noon ET on Thursday for non-preferred tenders and for preferred tenders of the 5.95% notes and at 4 p.m. ET for preferred tenders other than for the 5.95% notes.

Mexico may issue new notes to holders who tender their notes in the offer and place firm orders during the tender period, according to an issuer announcement. If Mexico decides to issue new notes, the sale is expected to settle on March 23.

The issuer plans to price global notes due 2027 to be denominated in dollars.

The tender offer dealer managers are Barclays (212 528-7581 or 800 438-3242), Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874). The billing and delivering bank is Deutsche Bank Securities Inc.

D.F. King & Co., Inc. (ums@dfking.com, 212 269-5550, 877 283-0317 or dfking.com/ums) is the information agent.

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