AMERICA MOVIL ISSUES 10.300% SENIOR NOTES DUE 2034
Ticker: AMXOF · Form: 6-K · Filed: Feb 1, 2024 · CIK: 1129137
Complexity: simple
Sentiment: neutral
Topics: debt-issuance, senior-notes, financing, underwriting
TL;DR
**America Movil just issued new 10.300% Senior Notes due 2034, signaling debt financing.**
AI Summary
América Móvil, S.A.B. de C.V. filed a 6-K on February 1, 2024, detailing a new Pricing Agreement dated January 24, 2024, with several major underwriters including BBVA Securities Inc. and J.P. Morgan Securities LLC. This agreement, which incorporates an Underwriting Agreement from October 1, 2018, is related to the issuance of 10.300% Senior Notes due 2034, as further detailed in a Seventh Supplemental Indenture also dated February 1, 2024. This matters to investors because it indicates the company is raising debt capital, which could impact its financial leverage and future interest expenses, potentially affecting profitability and stock valuation.
Why It Matters
This filing indicates América Móvil is raising capital through debt, which can fund operations or expansion but also increases the company's financial obligations and interest expense.
Risk Assessment
Risk Level: medium — Issuing high-yield senior notes increases the company's debt burden and future interest payment obligations, which could impact financial flexibility.
Analyst Insight
Investors should monitor América Móvil's debt-to-equity ratio and interest coverage ratio in upcoming financial reports to assess the impact of this new debt on the company's financial health and ability to service its obligations.
Key Numbers
- 10.300% — Interest Rate (The coupon rate for the Senior Notes due 2034)
- 2034 — Maturity Year (The year the Senior Notes will mature)
- January 24, 2024 — Pricing Agreement Date (The date the Pricing Agreement was executed)
- February 1, 2024 — Supplemental Indenture Date (The date the Seventh Supplemental Indenture was executed)
- October 1, 2018 — Underwriting Agreement Standard Provisions Date (The date of the incorporated standard underwriting agreement)
Key Players & Entities
- América Móvil, S.A.B. de C.V. (company) — the issuer of the notes
- BBVA Securities Inc. (company) — an underwriter for the notes
- Citigroup Global Markets Inc. (company) — an underwriter for the notes
- Goldman Sachs & Co. LLC (company) — an underwriter for the notes
- HSBC Securities (USA) Inc. (company) — an underwriter for the notes
- J.P. Morgan Securities LLC (company) — an underwriter for the notes
- Morgan Stanley & Co. LLC (company) — an underwriter for the notes
- Santander US Capital Markets LLC (company) — an underwriter for the notes
- Citibank, N.A. (company) — trustee and registrar for the notes
FAQ
What is the purpose of the 6-K filing by América Móvil?
The 6-K filing by América Móvil is to report a Pricing Agreement dated January 24, 2024, and a Seventh Supplemental Indenture dated February 1, 2024, related to the issuance of 10.300% Senior Notes due 2034, as required for foreign private issuers under the Securities Exchange Act of 1934.
What is the interest rate and maturity date of the newly issued Senior Notes?
The newly issued Senior Notes have an interest rate of 10.300% and are due in 2034, as stated in the Seventh Supplemental Indenture.
Which financial institutions are acting as underwriters for this offering?
The underwriters for this offering include BBVA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Santander US Capital Markets LLC, along with Mexican Underwriters named in Schedule III.
What is the role of Citibank, N.A. in relation to these Senior Notes?
Citibank, N.A. serves as the trustee and registrar for the 10.300% Senior Notes due 2034, and its London Branch acts as the paying, authenticating, and London transfer agent, as per the Seventh Supplemental Indenture.
Into which previous filing will this 6-K report be incorporated by reference?
This Report on Form 6-K shall be incorporated by reference into the Registrant's Registration Statement on Form F-3ASR (File No. 333-259910).
Filing Stats: 344 words · 1 min read · ~1 pages · Grade level 9.4 · Accepted 2024-02-01 13:10:49
Filing Documents
- d758161d6k.htm (6-K) — 11KB
- d758161dex11.htm (EX-1.1) — 187KB
- d758161dex41.htm (EX-4.1) — 96KB
- d758161dex42.htm (EX-4.2) — 51KB
- d758161dex51.htm (EX-5.1) — 12KB
- d758161dex52.htm (EX-5.2) — 17KB
- g758161dsp89a.jpg (GRAPHIC) — 7KB
- g758161g98v92.jpg (GRAPHIC) — 35KB
- 0001193125-24-021721.txt ( ) — 434KB
From the Filing
6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF A FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of February 2024 Commission File Number: 1-16269 AMÉRICA MÓVIL, S.A.B. DE C.V. (Exact Name of the Registrant as Specified in its Charter) America Mobile (Translation of Registrants name into English) Lago Zurich 245 Plaza Carso / Edificio Telcel, Piso 16 Colonia Ampliación Granada, Alcaldía Miguel Hidalgo 11529, Mexico City Mexico (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F This Report on Form 6-K shall be incorporated by reference into the Registrants Registration Statement on Form F-3ASR (File No. 333-259910). EXHIBITS Pricing Agreement, dated January 24, 2024 (incorporating the Underwriting AgreementStandard Provisions dated October 1, 2018) among América Móvil, S.A.B. de C.V., as Issuer, BBVA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander US Capital Markets LLC, as Underwriters, and the Mexican Underwriters named in Schedule III thereto. Exhibit 1.1 Seventh Supplemental Indenture, dated as of February 1, 2024, among América Móvil, S.A.B. de C.V., as issuer, Citibank, N.A., as trustee and registrar, and Citibank, N.A., London Branch, as paying, authenticating and London transfer agent, relating to the 10.300% Senior Notes due 2034. Exhibit 4.1 Specimen of Global Note representing the 10.300% Senior Notes due 2034. Exhibit 4.2 Opinion of Cleary Gottlieb Steen & Hamilton LLP, dated February 1, 2024. Exhibit 5.1 Opinion of Bufete Robles Miaja, S.C., dated February 1, 2024. Exhibit 5.2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 1, 2024 AMÉRICA MÓVIL, S.A.B. DE C.V. By: /s/ Carlos José García Moreno Elizondo Name: Carlos José García Moreno Elizondo Title: Chief Financial Officer