FEMSA Announces Successful Re-tap to its Senior Unsecured Notes due 2050

Rhea-AI Summary

FEMSA announced the successful placement of a US$700 million re-tap to its Senior Unsecured Notes due 2050, increasing the total outstanding balance to US$2,500 million. The new notes were priced at 102.620 with an implied yield to maturity of 3.358%. The proceeds will enhance FEMSA's cost of debt and will be used for general corporate purposes. This issuance builds on the US$1,500 million and US$300 million notes previously released in January and February 2020, respectively.

Positive

• Successful issuance of US$700 million in re-tap notes improves liquidity.
• Increased total outstanding notes to US$2,500 million could lower overall cost of debt.

Negative

• None.

MONTERREY, Mexico, June 25, 2020 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced the successful placement of a US$700 million re-tap to its US-denominated SEC-registered Senior Unsecured Notes due 2050 (“New Notes”), representing an additional issuance to FEMSA’s outstanding US$1,500 million 3.500% Senior Unsecured Notes due 2050 issued on January 16, 2020 (“Initial Notes”), and the outstanding US$300 million re-tap notes issued on February 12, 2020 (“Re-Tap Notes”). The New Notes will be treated as a single class with the Initial Notes and Re-Tap Notes, raising the total outstanding balance to US $2,500 million.  The New Notes were priced at 102.620 for an implied yield to maturity of 3.358%.

The proceeds from this issuance will be used for general corporate purposes, further improving FEMSA's cost of debt.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.

About FEMSA
FEMSA creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO GAS chain of retail service stations. In the beverage industry, it participates through Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the beer industry, as a shareholder of HEINEKEN, a brewer with operations in over 70 countries. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients. Through its business units, FEMSA has more than 300,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate is sustainability performance.