América Móvil returns for euros
June 21, 2019 |
Mexican telecom comes to the European bond market with $1.13bn in new notes more than a month after the roadshow
Mexico's América Móvil has sold €1bn ($1.13bn) in euro-denominated bonds after a three-year absence from the European debt market, LatinFinance has confirmed.
Barclays and Bank of America led the sale for the telecommunications company and placed the eight-year notes at 73bp over mid-swaps. The new notes came with a 0.75% coupon, but they priced at 99.745 to yield 0.783%. The other banks on the deal were JPMorgan, Santander, UBS and UniCredit, América Móvil said in a securities filing.
América Móvil decided to issue the new notes more than a month after it came home from meetings with investors in Europe. The company did not launch a deal immediately after the meetings because US-China trade tensions had upset the bond market. The threat of tariffs on Mexican imports made things worse until the US government backed down.
América Móvil said it will use the money to refinance €1bn in bonds due this year. The company has another €2bn that come due in 2021.
The Mexico City-based telecom, owned by billionaire Carlos Slim, last tapped European bond buyers for €1.5bn in March 2016, when its issued €850m in eight-year notes at 120bp over mid-swaps and €650m in 12-year notes at 150bp over mid-swaps.
The company earned $2.25bn from a two-part dollar bond deal in April this year, with $1bn in 10-year notes at 115bp over US Treasury notes and $1.25bn in 30-year notes at 145bp.
América Móvil agreed to buy Nextel Telecomunicações in Brazil from NII Holdings and AI Brazil Holdings for $905m in March this year. It also offered to buy Telefónica's businesses in Guatemala and El Salvador for $648m in January, but the antitrust agency has blocked the deal in El Salvador.