Cleary counsels América Móvil on senior bond issue
Cleary Gottlieb has represented América Móvil in a bond issue that will allow it to spin off a new company called Sitios Latinoamérica
Cleary Gottlieb has counselled América Móvil, a provider of telecommunications services, as initial issuer in a USD 1 billion 5.375% senior notes offering due 2032 under Rule 144A/Reg S. The offering was launched on 28 March 2022, priced on 30 March 2022 and closed on 4 April 2022.
The company intends to spin off (under Mexican law) certain telecommunications towers and other associated passive infrastructure outside Mexico into a new company to be called Sitios Latinoamérica (Sitios), a transaction through which the 5.375% senior notes due 2032 will be assumed by Sitios, and América Móvil will be released from all of its obligations thereunder.
Following the transaction, Sitios will control approximately 31,021 wireless telecommunications sites in Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Puerto Rico and Uruguay, positioning itself as a key player in wireless communications sites in Latin America.
Citigroup Global Markets and J.P. Morgan Securities acted as global coordinators and joint book-runners for the offering, while Barclays Capital, BBVA Securities, BofA Securities and Scotia Capital (USA) acted as joint book-runners. Ritch Mueller acted as counsel of Citigroup Global Markets, J.P. Morgan Securities, Barclays Capital, BBVA Securities, BofA Securities, and Scotia Capital (USA).
Ritch Mueller’s team comprised Jean Paul Farah Chajín, and associates Daniela Solís Navarro and Rodrigo Vázquez Sainz.
Cleary’s team included partners Nick Grabar (pictured top left) and Duane McLaughlin (pictured top right), associates José Andrés de Saro and Nicholas Koeppen, and international counsel Lara Gómez Tomei (pictured bottom right). Partner Bill McRae (pictured bottom left) and associate Jesse Hong provided tax advice. All lawyers are based in New York, except Lara Gómez Tomei, who is based in Buenos Aires.
