MEXICO CITY, MEXICO January 6, 2020 – Coca-Cola FEMSA, S.A.B. de C.V. (“KOF”) (NYSE: KOF) announces that it has commenced an offering of U.S. dollar-denominated global notes in one or more series (the “New Notes”), subject to market and other conditions. The New Notes will be unsecured obligations of KOF and will be fully and unconditionally guaranteed by Propimex, S. de R.L. de C.V., Comercializadora La Pureza de Bebidas, S. de R.L. de C.V., Grupo Embotellador Cimsa, S. de R.L. de C.V., Refrescos Victoria del Centro, S. de R.L. de C.V., Yoli de Acapulco, S. de R.L. de C.V., Controladora Interamericana de Bebidas, S. de R.L. de C.V. and Distribuidora y Manufacturera del Valle de México, S. de R.L. de C.V.
KOF intends to use the net proceeds from the sale of the New Notes to repurchase its 3.875% senior notes due 2023 (the “Old Notes”) in connection with the tender offer described herein, and to redeem any Old Notes not otherwise tendered and repurchased in such tender offer, and the remaining net proceeds, if any, for general corporate purposes, including to fund working capital, capital expenditures, acquisitions of or investments in businesses or assets, and the redemption or repayment of short-term or long-term borrowings.
KOF hereby also announces the commencement of an offer to purchase for cash (the “Offer”) of any and all of its Old Notes. In conjunction with the Offer, KOF is soliciting consents from the holders of Old Notes (the “Consent Solicitation”) to (i) reduce the Old Notes’ optional redemption notice periods from 45 days in the case of the notice to the trustee under the indenture governing the Old Notes and between 30 and 60 days in the case of the notice to the holders of Old Notes, in each case, to three business days, and (ii) to the execution and delivery of a supplemental indenture to the indenture governing the Old Notes in order to effect such amendment. Holders of a majority of the aggregate principal amount outstanding of the Old Notes must consent to the proposed amendment to the indenture governing the Old Notes in order for it to become effective.