Mexico’s €2.7 Billion Bond Offering and Concurrent €972 Million Tender Offer

Cleary Gottlieb represented the United Mexican States (Mexico) in the transaction. Sullivan & Cromwell and Ritch, Mueller, Heather y Nicolau advised the underwriters.

The United Mexican States (Mexico) completed a registered offering of €1,514,779,000 principal amount of its 1.450% global bonds due 2033 and €1,184,165,000 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 2.750% global notes due 2023 and otherwise for its general financing purposes.

The Cleary team advising Mexico included partners Nick Grabar (Picture) and Jorge Juantorena and associates Stephanie Fontana, Olivia Wittels, and Eric Finkelberg. Partner Jason Factor, senior attorney David Stewart Fisher, and associates Benjamin Hanson and Michael Sims advised on New York tax matters.

Sullivan & Cromwell advised Banco Santander, S.A., Barclays Bank PLC,  BNP Paribas,  Citigroup Global Markets  with Christopher L. Mann, Werner Federico Ahlers y Jeffrey D. Hochberg, Paul McElroy, Saul Brander and Joaquín Pérez Alati.

Ritch, Mueller, Heather y Nicolau advised Banco Santander, S.A., Barclays Bank PLC,  BNP Paribas,  Citigroup Global Markets with Carlos F. Obregón Rojo, Luis Nicolau Gutiérrez and Luis Alonso Suárez del Real Tostado.

Involved fees earner: Jason Factor – Cleary Gottlieb Steen & Hamilton; Eric Finkelberg – Cleary Gottlieb Steen & Hamilton; Stephanie Fontana – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Benjamin Hanson – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Michael Sims – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Olivia Wittels – Cleary Gottlieb Steen & Hamilton; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Carlos Obregón Rojo – Ritch, Mueller, Heather y Nicolau, SC; Luis Alonso Suárez del Real Tostado – Ritch, Mueller, Heather y Nicolau, SC; Werner Ahlers – Sullivan & Cromwell; Saul Brander – Sullivan & Cromwell; Jeffrey Hochberg – Sullivan & Cromwell; Christopher Mann – Sullivan & Cromwell; Paul McElroy – Sullivan & Cromwell; Joaquin Perez Alati – Sullivan & Cromwell;

Law Firms: Cleary Gottlieb Steen & Hamilton; Ritch, Mueller, Heather y Nicolau, SC; Sullivan & Cromwell;

Clients: Banco Santander Sa; Barclays Bank; BNP Paribas; Citigroup Global Markets Ltd; United States of Mexico;

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Author: Ambrogio Visconti