America Movil Launches Exchange Offer

Mexico-based America Movil has put out an exchange offer for almost $1.3bn of Telmex notes, it says in a filing on the Mexican stock exchange. It is offering to swap $798.4m of outstanding Telmex 5.50% senior notes, due 2015, for new America Movil 5.75% senior notes due 2015. It is offering holders $980.69 in new bonds per $1,000.00 principal, if they accept before the March 3 early deadline, and $950.69 after that. It is also offering to buy back $500m of outstanding Telmex 5.5% senior notes due 2019 in exchange for 5.0% senior notes due 2020. It is offering holders $1,018.33 per $1,000.00 principal, if they accept before the March 3 early deadline, and $988.33 after that. The new America Movil notes will be guaranteed by America Movil’s subsidiary, Radiomovil Dipsa, known as Telcel.