#Mexico #Mexico City #Notes #CFE #Comisión Federal de Electricidad

CFE Tender Offer Results

On February 5, 2026, the Comisión Federal de Electricidad (CFE) made significant announcements regarding its previously disclosed cash tender offer aimed at purchasing its own notes. This state-owned company, integral to Mexico's federal government, revealed the early results of this tender offer and also communicated an increase in the maximum purchase price for the notes involved in the transaction.

Overview of the Tender Offer

The initial maximum consideration that CFE set for purchasing the notes was $500 million, but this has now been increased to an impressive $510,746,000. This adjustment indicates the company's robust outlook and financial capacity to manage its existing obligations effectively.

The offer is structured with specific terms outlined in an offer to purchase documentation dated January 22, 2026. As stipulated in this document, both the terms and the overall framework of the offer remain consistent with earlier announcements except for the revised maximum purchase price.

Notes Details and Acceptance

The list of notes being considered in this tender includes:

• - 4.688% Sustainable Notes due 2029 with an outstanding principal amount of $1,250,000,000. $595,369,000 of these notes were tendered before the early tender date.
• - 6.125% Notes due 2045 totaling an outstanding principal amount of $602,337,000, with $223,975,000 submitted for tender.
• - 6.264% Sustainable Notes due 2052 are currently at $473,000,000, with $98,314,000 tendered before the cut-off.

It is noteworthy that although the 2029 notes saw significant tenders, the higher proportions of the tender did not allow for the acceptance of the 2045 and 2052 notes due to the maximum purchase price limit being exceeded.

CFE has enacted a pro-rata acceptance basis specifically for the 2029 notes, where they utilized a proration factor of 82.6034%. Consequently, only a portion of the tendered notes will be accepted for purchase on this basis. CFE is set to make payments for the accepted notes on the anticipated early settlement date, which is lined up for February 9, 2026.

Conditions and Future Steps

As of the early tender date on February 4, 2026, eligible notes that were not accepted for the purchase will be promptly returned to the holders at no cost. It's also critical to note that all holders who submitted valid tenders for the 2029 notes before the specified early tender date will receive an additional tender premium along with the accrued interest until the early settlement date.

Moreover, any notes tendered after the early tender date will not be considered for acceptance since the total tender amount has already reached the limits of the maximum consideration.

The right to withdraw tendered notes has also expired, emphasizing the importance of acting swiftly in these financial decisions. The full offer will conclude at 11:59 PM New York Time on February 20, unless CFE decides to extend the terms of the offer.

As part of the tender offer management, CFE has collaborated with industry-leading financial institutions such as BBVA Securities Inc., J.P. Morgan, and Citigroup Global Markets among others, to facilitate the process.

Conclusion

CFE's early tender results signify a proactive strategy in managing its financial commitments and reflecting market confidence. The successful execution of this tender offer can potentially enhance the company's financial profile and provide greater flexibility for capital allocation going forward. Stakeholders and noteholders are encouraged to stay informed regarding further developments as CFE continues its efforts in optimizing its debt management.