Bulletin: FEMSA To Strengthen Cash Position And Extend Debt Profile On Add-On Of Up To $700M To Senior Unsecured Notes Due 2050

Mexico City (S&P Global Ratings) June 22, 2020--S&P Global Ratings said today that its ratings on Fomento Económico Mexicano S.A.B. de C.V. (FEMSA; global scale: A-/Negative/--; national scale: mxAAA/Stable/mxA-1+) remain unchanged following the announcement of a proposed $700 million add-on to its $1.8 billion senior unsecured notes due 2050. In January 2020, FEMSA issued $1.5 billion in senior unsecured notes with a 30-year tenor, and re-tapped the bond market in February 2020 with a $300 million issuance, reaching a total amount of $1.8 billion senior unsecured notes due 2050. In line with the existing notes' indenture, the proposed notes add-on won't be guaranteed by any of FEMSA' subsidiaries and will rank pari passu in right of order and payment with

...June 22, 2020 Mexico City (S&P Global Ratings) June 22, 2020--S&P Global Ratings said today that its ratings on Fomento Econ=mico Mexicano S.A.B. de C.V. (FEMSA; global scale: A-/Negative/--; national scale: mxAAA/Stable/mxA-1+) remain unchanged following the announcement of a proposed $700 million add-on to its $1.8 billion senior unsecured notes due 2050. In January 2020, FEMSA issued $1.5 billion in senior unsecured notes with a 30-year tenor, and re-tapped the bond market in February 2020 with a $300 million issuance, reaching a total amount of $1.8 billion senior unsecured notes due 2050. In line with the existing notes' indenture, the proposed notes add-on won't be guaranteed by any of FEMSA' subsidiaries and will rank pari passu in right of order and payment with the company's existing unsecured notes issued at FEMSA level. We expect the company to use the net proceeds of the issuance to enhance its cash position and for general corporate purposes. This transaction will allow FEMSA...

Bulletin