Paraguay accepts tenders for $338.51 million of 4 5/8% bonds due 2023

By Taylor Fox

New York, Jan. 21 – The Republic of Paraguay announced the results of its one-day offer to purchase for cash up to $338,506,000 of its outstanding 4 5/8% bonds due 2023, according to a company announcement.

As of the expiration time, Paraguay received preferred tenders for $338,506,000 of the notes, all of which were accepted, and non-preferred tenders for $209,427,000 of the notes, none of which were accepted. The deadline was noon ET Jan. 20 for non-preferred tenders and 1 p.m. ET Jan. 20 for preferred tenders.

As previously reported, holders will receive $1,078.75 per $1,000 of bonds tendered and accepted, plus interest.

The offer was not conditioned upon any minimum participation of old bonds but is conditioned on, among other things, the pricing, but not the closing, of a new issuance of bonds due 2033 and an additional issuance of existing 5.4% bonds due 2050.

Paraguay plans to apply a portion of the net proceeds of its new bonds offering to purchase the old bonds accepted under the tender offer.

Settlement is expected for Jan. 27.

Citigroup Global Markets Inc. is the billing and delivering bank for the offer; Global Bondholder Services Corp. (212 430-3774, 866 470-4200) is the information agent; and Citigroup Global Markets Inc. (212 723-0859, 800 558-3745), Itau BBA USA Securities, Inc. (212 710-6749, 888 770-4828) and Santander Investment Securities Inc. (212 761-1057, 800 624-1808) are the dealer managers.

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