Colombia offers to buy back four bond series for cash

By Rebecca Melvin

New York, Jan. 12 – The Republic of Colombia has begun a capped offer to purchase for cash its 4 3/8% global bonds due 2021, 4% global bonds due 2024, 4˝% global bonds due 2026 and 3 7/8% global bonds due 2027, according to a company announcement on Tuesday.

The company also plans to price new notes, including an add-on to its 2031 notes, and new notes maturing 2061.

For validly tendered 2021 notes (Cusip: 195325BN4), of which there is $1,485,568,000 principal amount outstanding, holders will receive the fixed price of $1,109.28 per $1,000 principal amount of notes.

For validly tendered 2024 notes (Cusip: 195325BQ7), of which there is $2.1 billion principal amount outstanding, holders will receive $1,081.50.

For validly tendered 2026 notes (Cusip: 195325CX1), of which there is $1.5 billion principal amount outstanding, holders will receive $1,127.50.

And for validly tendered 2027 notes (Cusip: 195325DL6), of which there is $2.4 billion principal amount outstanding, holders will receive $1,109.00 per bond.

Holders will also receive any accrued and unpaid interest on their old bonds up to but excluding the settlement date scheduled to occur on Jan. 20.

The offer will be capped, with the maximum amount to be announced later. The offer is conditioned on the issuance of new notes.

Tendered bonds may be subject to proration. Orders for the 2021 bonds will be accepted before the other series. After the consummation of the offer and prior to the stated maturity of the 2021 bonds, Colombia may seek to redeem, in accordance with their terms, some or all of the remaining 2021 bonds.

Reinvestment tenders can be submitted if bondholders wish to bid on a certain amount of new 2031 bonds up to the amount of the tender value of their old notes divided by the issue price of the new bonds. Or, noteholders can submit simple tender orders without an indication of interest.

The sovereign’s simple tender offer expires at 12:30 p.m. ET on Jan. 12, and the reinvestment tenders expire at 3 p.m. ET.

Colombia expects to announce on Jan. 13 the maximum purchase amount, the aggregate principal amount of reinvestment tenders and of simple tenders of the old bonds that have been accepted and whether any proration has occurred for any series.

Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653), Deutsche Bank Securities Inc. (212 250-2955 or 866 627-0391) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) are dealer managers of the tender offer. JPMorgan is the billing and delivery bank.

D.F. King & Co. Inc. (212 269-5550, 877 896-3199, colombia@dfking.com) is the information agent.

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