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Fomento Económico Mexicano (FEMSA) has commenced a tender offer to purchase up to $250 million in aggregate principal amount of its 3.500% senior notes due 2050. The tender offer targets FEMSA’s 3.500% senior notes due 2050, with a principal amount outstanding of $1.557 billion. The reference security for the offer is the 4.625% US Treasury note due 15 May 2054, with a fixed spread of 50 basis points. The tender offer, which will expire on July 3, 2024, unless extended, is being made under the terms outlined in FEMSA's Offer to Purchase dated 4 June 2024.

Holders who tender their notes by the early tender time of 17 June 2024 will be eligible to receive the "total consideration," which includes a $30 per $1,000 principal amount early tender premium. "This tender offer forms an integral part of the strategic initiatives we announced earlier this year as a result of a thorough review of FEMSA's business platform," the company said in a statement. If the tender offer is oversubscribed at the early tender time, FEMSA said it will accept notes on a prorated basis to ensure the aggregate principal amount purchased does not exceed the $250 million tender cap. The company reserves the right to waive any and all conditions of the tender offer on or prior to the initial settlement date. FEMSA operates a diverse business portfolio that includes beverage, retail and logistics divisions. It is renowned for its Oxxo convenience stores and is the largest Coca-Cola bottler by volume worldwide through its Coca-Cola FEMSA division. The company said the tender offer is not contingent on a minimum principal amount of notes being tendered. BofA Securities is acting as the dealer manager for the tender offer, while Global Bondholder Services Corporation is serving as the tender agent and information agent.