PEMEX and Mexican Ministry of Finance in $1 Billion Global Bond Offering and Landmark Liability Management

Cleary Gottlieb represented long-time client Petróleos Mexicanos (PEMEX) and the Mexican Ministry of Finance in a landmark new money issuance and liability management transactions that reduced Pemex’s outstanding indebtedness, lowered its cost of funding, and extended the maturity profile of its debt.

On December 6, 2021, PEMEX launched an offering of $1 billion principal amount of its 6.7% notes due 2032, which priced on December 7, 2021, and closed on December 16, 2021.

The related liability management transactions, which launched on December 7, 2021, and settled on December 23, 2021, consisted of offers to exchange 12 series of outstanding PEMEX notes with maturities ranging from 2024 through 2030 and offers to purchase for cash six series of outstanding PEMEX notes with maturities ranging from 2044 through 2060. In connection these liability management transactions, the Mexican government provided a $3.5 billion capital injection to PEMEX.

When taking into account the offering of new notes and liability management transactions, PEMEX issued approximately $6.8 billion of new notes, of which approximately $5.8 billion was issued in exchange for outstanding PEMEX notes, and repurchased and cancelled approximately $2.6 billion of its notes targeted in the offers to purchase.

BofA Securities, Citigroup, Goldman Sachs, and HSBC acted as dealer managers in the liability management transaction.