FEMSA’s $700 Million Notes Reopening

Cleary Gottlieb represented Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) in the reopening. Ritch Mueller advised the representatives of the underwriters.

Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) executed the $700 million reopening of its 3.5% senior notes due 2050.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and Morgan Stanley & Co. LLC acted as underwriters for the transaction.

The offering was an SEC-registered takedown, and the notes will be listed on the New York Stock Exchange. This is FEMSA’s second reopening of the 3.5% senior notes due 2050, resulting in a total aggregate principal amount outstanding of $2.5 billion in this series. The transaction priced on June 22, 2020, and closed on June 25, 2020.

FEMSA is a leading Mexican company that participates in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world; in the retail industry through FEMSA Comercio, operating OXXO, the largest- and fastest-growing chain of small-format stores in Latin America; and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries.

The Cleary Gottlieb team representing FEMSA included partner Duane McLaughlin (Picture), associate Jose Andres de Saro and law clerk Ethan Back. Partner Jason Factor and associates Kylie Barza and Alexander Cadmus provided tax advice.

Ritch Mueller advised the representatives of the underwriters with partner Luis A. Nicolau Gutiérrez and Luis Alonso Suárez del Real Tostado.

Skadden, Arps, Slate, Meagher & Flom LLP also advised on the deal.

Involved fees earner: Kylie Barza – Cleary Gottlieb Steen & Hamilton; Alexander Cadmus – Cleary Gottlieb Steen & Hamilton; Jose Andres de Saro – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Duane McLaughlin – Cleary Gottlieb Steen & Hamilton; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Luis Alonso Suárez del Real Tostado – Ritch, Mueller, Heather y Nicolau, SC;

Law Firms: Cleary Gottlieb Steen & Hamilton; Ritch, Mueller, Heather y Nicolau, SC;

Clients: Citigroup Global Markets Ltd; Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA); Goldman Sachs; Morgan Stanley;

Avatar

Author: Ambrogio Visconti