PEMEX in $5 Billion Offering and $2.8 Billion Liability Management Transactions
January 27, 2020
Cleary Gottlieb is representing longtime client Petróleos Mexicanos (PEMEX), the Mexican state oil company, in a debt offering and a series of liability management transactions intended to strengthen PEMEX’s financial condition.
PEMEX offered two series of global notes under its $112 billion medium-term notes program, Series C, to be issued pursuant to Rule 144A and Regulation S, with registration rights, for an aggregate principal amount of $5 billion. PEMEX intends to use the net proceeds from the sale of the global notes to fund a concurrent abbreviated five-day cash tender offer targeting two series of global notes maturing in 2020, with an aggregate principal amount of approximately $800 million, and the remainder of the funds will be used to repay other indebtedness.
PEMEX also announced the commencement of separate exchange offers in connection with 10 short-term maturity notes due 2021 through 2026 and four long-term maturity bonds due 2044 through 2048, for newly issued notes up to a principal amount of $2 billion.
Barclays, BBVA, BNP, J.P. Morgan, Morgan Stanley, MUFG, Scotia, and SMBC are acting as managers in the global notes offering and dealer managers in the liability management transactions.