Pemex announces new bond, liability management

Credit: REUTERS/DANIEL BECERRIL

Pemex has announced its intention to issue new bonds as part of a cash tender and exchange designed to reduce debt and manage the trouble oil company's debt profile.

By Miluska Berrospi

NEW YORK, Sept 11 (IFR) - Pemex has announced its intention to issue new bonds as part of a cash tender and exchange designed to reduce debt and manage the trouble oil company's debt profile.

The Mexican state-owned oil company plans to hit the market on Thursday with a new bond offering comprising maturities of seven, 10 and 30 years.

It will also use US$5bn equivalent in proceeds from a capital contribution from the government to help fund the operation.

The liability management transactions are expected to include private tender offers for cash for bonds maturing between 2020 to 2023.

The new bond issue will be done concurrently with an exchange offer for bonds maturing between 2022 and 2048.

Citigroup, Goldman Sachs, HSBC and JP Morgan have been mandated as active joint bookrunners and lead dealer managers. BofA Merrill Lynch, Credit Agricole CIB and Mizuho Securities are passive joint bookrunners and dealer managers.

(Reporting By Paul Kilby, Miluska Berrospi; Editing by David Bell)

((paulj.kilby@thomsonreuters.com; 646 223 4733; Reuters Messaging: paulj.kilby.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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