Pemex’s $5 Billion Notes Offering and $2.8 Billion Liability Management Transactions

Cleary Gottlieb represented Petróleos Mexicanos (PEMEX) 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 U.S. $112,000,000,000 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.

Petróleos Mexicanos (PEMEX) is the Mexican state oil company. The Company offers pipeline carriage, petrochemical distributor and shipping centers, logistics, and fuel commercialization services.

The Cleary team advising PEMEX included partners Jorge Juantorena, David Lopez, and Manuel Silva; associates Alejandro Canelas and Martin Simonis; international lawyer Laura Hernández; and law clerks Sofia Sequeira-Murillo and Brayan Acevedo. Partner Jason Factor and associates Lorenz Haselberger, Amy Hinz, and Michael Sims advised on tax matters. All lawyers are based in New York.

Involved fees earner: Alejandro Canelas Fernandez – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Lorenz Haselberger – Cleary Gottlieb Steen & Hamilton; Laura Hernández Osorio – Cleary Gottlieb Steen & Hamilton; Amy Hinz – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; David Lopez – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Martin Simonis – Cleary Gottlieb Steen & Hamilton; Michael Sims – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Pemex – Petróleos Mexicanos;

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Author: Ambrogio Visconti