Belize extends tender offer for 2034 notes by one week

Chicago, Oct. 15 – The government of Belize extended the expiration time for its tender offer for its $552,901,232 outstanding dollar-denominated bonds due 2034 (Cusips: 07782GAG8, P16394AG6) in a press release late on Friday.

The expiration time has been moved to 5 p.m. ET on Oct. 22, back from 5 p.m. ET on Oct. 15.

The issuer did not give an update on the amount of tenders received, but as of the last update the government had received tenders for around 84.38% of Belize’s only international issue.

Tender offer

As previously reported, Belize was offering to buy each $1,000 note for a total payment of $550.90. The total payment included a purchase price of $517 per note plus a $33 accrued interest payment plus a $0.90 contingency account distribution.

At this point, though, as of the Sept. 24 consent deadline, noteholders will only receive $517 per note and the $0.90 contingency account distribution.

The actual principal amount of the bonds is $526,502,100; however, interest due Aug. 20, 2020, Nov. 20, 2020 and Feb. 20, 2021 have been capitalized and now constitute the principal amount of the bonds.

Tendering noteholders were eligible to receive the accrued interest payment of $33 in lieu of accrued and unpaid interest on their bonds from Feb. 20, 2021 to Oct. 19.

As previously reported, a committee of institutional investors comprising Aberdeen Standard Investments, Grantham, Mayo, Van Otterloo & Co. LLC and Greylock Capital Management LLC holding close to half of the outstanding principal amount of the bonds agreed in principle on key indicative commercial terms of the offer and the consent solicitation.

Financing for the tender offer is expected to come from funding via The Nature Conservancy Blue Bonds for Ocean Conservation program, which uses private capital to refinance public debt of participating countries in order to support durable marine conservation efforts and sustainable marine-based economic activity.

The offer remains subject to the satisfaction of the financing condition.

Consent solicitation

Belize was also soliciting consents for some exit amendments to the indenture that will, among other things, enable Belize to redeem for cash any bonds not tendered in the offer. The bonds would be redeemed at the repurchase price minus the interest payment.

Consents were also being solicited to establish a custody account administered by the trustee, as custodian, to facilitate the redemption and allow for the distribution of amounts in the contingency account to eligible holders upon settlement of the offer or concurrent redemption of untendered bonds.

Each tendering noteholder was deemed to have given consent. Bonds could not be tendered without delivering consents.

The government has already received the requisite number of tender orders to satisfy the super-majority consent condition.

Details

The offer was conditioned upon noteholders representing at least 75% of the bonds tendering their notes.

Settlement is planned for soon after the expiration time. On the settlement date, all of the bonds not tendered will be redeemed without the interest payment or any other additional amount.

The offer will be terminated if settlement of the offer and consent solicitation has not occurred by Nov. 19.

Citigroup Global Markets Inc. is the dealer manager and also financial adviser and ESG structuring adviser (800 558-3745, 212 723-6106).

Global Bondholder Services Corp. is the information and tender agent (212 430-3774, 866 470-3700, contact@gbsc-usa.com).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.