Mexican telecommunications company, America Movil, will swap $1.3 billion of Telefonos de Mexico (Telmex) outstanding notes with its own, The Wall Street Journal reports. It will issue Telmex new 5.75% notes due in 2015 in exchange of the 5.5% Telmex notes maturing in 2015 worth $798.4 million.

The company will also issue 5% notes maturing in 2020 replacing the 5.5% Telmex notes due in 2019 totaling $500 million. America Movil’s Mexican unit, Radiomovil Dipsa or Telcel, will guarantee the new debt. The exchange offer will expire on March 3, 2011.

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