Fomento Económico Mexicano’s $300 Million Notes Offering

Cleary Gottlieb, Skadden and Ritch, Mueller, Heather y Nicolau advised on the transaction

Fomento Económico Mexicano S.A.B. de C.V. (FEMSA) executed its $300 million reopening of its 3.5% senior notes due 2050.

The offering was an SEC-registered takedown, and the notes will be listed on the New York Stock Exchange.

This is FEMSA’s first reopening of the 3.5% senior notes due 2050, resulting in a total aggregate principal amount outstanding of $1.8 billion in this series.

BofA Securities Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC acted as underwriters for the transaction. The transaction priced on February 7, 2020, and closed on February 12, 2020.

FEMSA is a leading Mexican company that participates in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world; in the retail industry through FEMSA Comercio, operating OXXO, the largest- and fastest-growing chain of small-format stores in Latin America; and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries.

Cleary Gottlieb represented Fomento Económico Mexicano S.A.B. de C.V. on the transaction with a team including partner Duane McLaughlin, associate Lizzie Gomez, and international lawyer Jose Andres de Saro. Associate Kylie Barza and law clerk Hunter McWinn provided tax advice.

Skadden advised  BofA, Goldman Sachs and J.P. Morgan, as representatives of the underwriters, with a team including Partner Alejandro Gonzalez Lazzeri, associate Alejandro Ascencio and international visiting professional Marco Ferrario in New York.

In Mexico, Ritch, Mueller, Heather y Nicolau advised BofA, Goldman Sachs and J.P. Morgan with a team including Luis A Nicolau Gutiérrez (Picture) and Luis Alonso Suárez del Real Tostado.

Involved fees earner: Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Luis Alonso Suárez del Real Tostado – Ritch, Mueller, Heather y Nicolau, SC; Alejandro Ascencio – Skadden Arps Slate Meager & Flom; Marco Ferrario – Skadden Arps Slate Meager & Flom; Alejandro Gonzalez Lazzeri – Skadden Arps Slate Meager & Flom;

Law Firms: Ritch, Mueller, Heather y Nicolau, SC; Skadden Arps Slate Meager & Flom;

Clients: Bank of America; Goldman Sachs & Co.; JP Morgan;

Author: Ambrogio Visconti.