Pemex Reveals Measures To Improve Financial Condition

(Pemex, 11.Sep.2019) — Petróleos Mexicanos (Pemex) announced a series of measures intended to improve its financial condition. First, Pemex announced that it expects to receive a capital contribution (the “Capital Contribution”) in an amount in Mexican pesos equivalent to U.S. $5.0 billion from the Government of Mexico as part of the Government’s effort to strengthen Pemex’s financial stability.

Pemex intends to use the proceeds from the Capital Contribution in a series of liability management transactions targeting certain series of Pemex outstanding notes. As part of these liability management transactions, Pemex is commencing an offering of U.S.-dollar denominated global notes in one or more series (the “New Money Notes”), subject to market and other conditions. The proceeds from the Capital Contribution and New Money Notes will be used to reduce Pemex’s debt (including the repayment of short-term loans) and help manage its maturity profile.

The New Money Notes will be issued under Pemex’s U.S. $102,000,000,000 Medium-Term Notes Program, Series C, will constitute unsecured obligations of Pemex and will be jointly and severally guaranteed by Pemex Exploración y Producción, Pemex Transformación Industrial and Pemex Logística, and their respective successors and assignees.

The liability management transactions are expected to include private tender offers for cash for the following outstanding PEMEX securities:

If commenced, the Tender Offers would be on the terms and subject to the conditions set forth in an offer to purchase. Pemex intends to use the proceeds from the Capital Contribution to repurchase the securities validly tendered and accepted for purchase in the Tender Offers.

Concurrently with the pricing of the New Money Notes, Pemex intends to commence exchange offers (the “Exchange Offers”) for the following outstanding Pemex securities:

If commenced, the Exchange Offers would be on the terms and subject to the conditions set forth in an exchange offering memorandum. Pemex refers to the Tender Offers and the Exchange Offers as the “Offers.”

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