Cleary Gottlieb represented the United Mexican States in its recent $2.8 billion exchange and cash tender offer for certain series of its outstanding US dollar-denominated bonds. The offer expired on January 11 and the transaction closed on January 29.
The international offer invited the holders of five series of Mexico’s external bonds maturing in 2019, 2022, 2026, 2031 and 2033 to submit offers, in a modified Dutch auction, to exchange their bonds for reopened 6.75% global notes due 2034 plus a cash payment, or to sell their bonds for cash. The cash paid by Mexico in the transaction came from Mexico’s available funds and was not subject to a financing condition.
The reopened notes were issued under Mexico’s $50 billion medium-term note program registered with the SEC. The invitation was also qualified as a public offer under the EU Prospectus Directive in Luxembourg and “passported” into France, Germany, Ireland, the Netherlands, Spain and the United Kingdom.
The transaction was part of Mexico’s ongoing program to manage its external liabilities and improve its debt maturity profile. Barclays Capital and Morgan Stanley acted as dealer managers for the transaction, and Bondholder Communications Group acted as exchange and information agent.