MEXICO CITY -(Dow Jones)- Mexican telecommunications giant America Movil SAB (AMX, AMX.MX) said Monday it is launching an offer to exchange around $1.3 billion in outstanding notes of fixed-line telephone company Telefonos de Mexico SAB (TMX, TELMEX.MX) for America Movil debt.
In a filing with the Mexican stock exchange, America Movil said the new debt will be guaranteed by its Mexican unit Radiomovil Dipsa, which is better known in Mexico as Telcel.
The exchange offer runs through March 3, unless extended. Holders of Telmex notes who tender their notes before Feb. 16 will receive an early tender payment.
Last year, America Movil took a controlling stake in Telmex, Mexico's largest fixed-line telephone operator, when it acquired Carso Global Telecom, the holding company for Telmex and Telmex Internacional, as billionaire Carlos Slim consolidated his telecommunications holdings. America Movil began consolidating results of Telmex and Telmex Internacional in the third quarter of last year.
America Movil said it's offering to swap $798.4 million in Telmex 5.5% notes due 2015 for new 5.75% America Movil notes due 2015, and $500 million in 5.5% Telmex notes due 2019 for new 5% America Movil notes due 2020.
Including the early tender payment, America Movil will offer $980.69 in new 2015 notes for each $1,000 tendered of old Telmex notes, and $1,018.33 of the 5% 2020 notes for each $1,000 tendered of Telmex 2019 notes. After the early tender date, the amounts fall to $950.69, and $988.33, respectively.
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