12
Sep

Pemex announces a transaction to repay and refinance debt

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Pemex announced today a series of measures intended to improve its financial condition. This operation considers a capital contribution from the Federal Government equivalent to 5 billion US dollars to be used for the prepayment of debt.

In line with the strategy of strengthening the company’s finances under a zero net indebtedness premise in real terms, the following transaction in the international debt markets is announced today:

The transaction is structured in three parts:

1. Pemex will receive a capital contribution equivalent to 5 billion US dollars. The company intends to use the proceeds for the prepayment of bonds in the short part of the curve with maturities between 2020 and 2023.
2. A new issue in 7, 10 and 30 years for the refinancing of short-term debt.
3. Finally, Pemex will launch an exchange offer to the effect of providing additional support to maturities in the short, intermediate and long part of the curve, in order to improve the company’s amortization profile.​

Proceeds from this transaction will be used to ensure a reduction in the outstanding balance of Pemex’s debt, an improvement in its liquidity indicators, reducing short-term maturities and generating savings on interest expense, which is aimed at strengthening the financial position of Pemex, in accordance with its Business Plan.

It is anticipated that this transaction will have participation of investors from the United States, Europe, Asia and Mexico. Goldman Sachs, J.P. Morgan, Citi, HSBC, Mizuho, Crédit Agricole and Bank of America will act as bookrunners.

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