Latin America’s leading telco America Movil is issuing Ps10bn (US$820m) 10-year notes, reopening a previous offering.
The senior unsecured debt was rated A2 by Moody’s de Mexico, which said the proceeds would be used in part for debt…
Latin America’s leading telco America Movil is issuing Ps10bn (US$820m) 10-year notes, reopening a previous offering.
The senior unsecured debt was rated A2 by Moody’s de Mexico, which said the proceeds would be used in part for debt refinancing.
AMX first issued these notes in November last year, pricing Ps15bn (US$1.16bn) of the 6.45% paper in an oversubscribed offering. In February it re-tapped the November offering, raising a further Ps7.5bn (US$584m). Should this third tap be successful AMX will have garnered roughly Ps32.5bn (US$2.7bn) from the series. BBVA, Citigroup, Credit Suisse, Deutsche Bank, HSBC and Morgan Stanley were bookrunners on the two previous offerings.
“America Movil continues to exhibit strong credit metrics: as of the end of 2012, it posted strong annual operating cash flow of about US$15bn, equivalent to 40% of adjusted debt, and a leverage of 1.7 times adjusted debt/EBITDA,” said Soummo Mukheree, a credit officer at Moody’s.
The agency warned that its credit score could be at risk if there is regulatory changes in Mexico that harms AMX and if competition intensifies.
AMX is Mexico’s largest telecoms operator with approximately 70% of wireless subscribers and 80% of fixed subscribers. It is the number one mobile operator in Latin America and the ninth largest in the “global telecom universe” by revenue, Moody’s said.
