Carlos Slim’s America Movil (AMX) has reportedly priced dual-currency, 60-year hybrid bonds worth a total US$2.76bn.
The three-part issue consists of two euro tranches totalling €900m (US$1.18bn) and €550m (US$724.5m) respectively and a sterling…
Carlos Slim’s America Movil (AMX) has reportedly priced dual-currency, 60-year hybrid bonds worth a total US$2.76bn.
The three-part issue consists of two euro tranches totalling €900m (US$1.18bn) and €550m (US$724.5m) respectively and a sterling tranche amounting to £550m (US$856.6), according to Reuters data. All three tranches mature on 6 September 2073.
The €900m tranche carries a coupon of 5.125% and priced at 99.463 to yield 5.25%. This represents a spread of 437.5 basis points over mid-swaps.
The €550m tranche carries a coupon of 6.375% and priced at 98.98 to yield 6.517%, equivalent to 461.2 basis points over mid-swaps.
The £550m tranche carries a coupon of 6.375% and priced at 99.437, 338.2 basis points over mid-swaps, to yield 6.478%.
The sole structuring adviser for the transaction is Deutsche Bank with Barclays and BNP Paribas joining as lead managers.
Moody’s has rated the issue A2, Standard and Poor’s A-, and Fitch A.
The notes are to be listed in Luxembourg.
The CFO of the Mexico-based telco, Carlos Garcia Moreno, told Reuters the issue – AMX’s first ever hybrid – forms part of a strategy to maintain its credit rating by replacing short-term paper with longer-term debt. He sought to dispel rumours that the new issue was linked to potential acquisition opportunities, saying the company does not intend to use the proceeds for anything else.
Late last week, AMX confirmed its commitment to its €7.2bn offer to take over Dutch telco KPN, but said it is prepared to walk away if the foundation charged with protecting the target maintains its current stance. The foundation had earlier announced it had acquired KPN preference shares equal to 50% minus one vote of all outstanding company shares and later called on AMX to make a “fair bid”.
