Mexico in €2.7 Billion Bond Offering and Concurrent €972 Million Tender Offer
January 25, 2021
Cleary Gottlieb represented the United Mexican States (Mexico) in a registered offering of €1.52 billion principal amount of its 1.45% global bonds due 2033 and €1.18 billion principal amount of its 2.125% global bonds due 2051.
The offering launched and priced on January 14, 2021, and closed on January 25, 2021. Banco Santander S.A., Barclays Banks PLC, BNP Paribas, and Citigroup Global Markets Limited acted as underwriters for the bond offering.
Concurrent with the launch of the bond offering, Mexico also conducted a “switch” tender offer to purchase, for cash, certain series of outstanding bonds, which launched on January 14, 2021, and expired the same day. This transaction was Mexico’s first tender offer for euro-denominated bonds since 2013. Tenderers could either “switch” into a specified series of the new bonds by submitting an indication of interest concurrently with their tender or tender for cash. The tender offer resulted in the repurchase of an aggregate of approximately €972 million of outstanding debt across 7 series. Banco Santander S.A., Barclays Banks PLC, BNP Paribas, and Citigroup Global Markets Inc. acted as joint dealer managers for the tender offer.
In addition to paying the purchase price for the outstanding bonds pursuant to the tender offer, Mexico used the net proceeds of the bond offering toward the payment of part or all of the redemption price of its outstanding euro-denominated 2.75% global notes due 2023 and otherwise for its general financing purposes.
Cleary has previously represented Mexico, as issuer, in numerous securities transactions for more than 30 years.