Bolivia extends tender, exchange offers for three series of notes

By Rebecca Melvin

Concord, N.H., Feb. 16 – Bolivia announced an extension of its Feb. 10 cash tender offers to purchase three series of notes from non-Bolivian eligible holders and to exchange the notes for new notes in the case of Bolivian entity holders, according to a news release Wednesday.

The expiration deadline has been extended to 9 a.m. ET on Feb. 22 from 9 a.m. ET on Feb. 17. The announcement date has been extended to 4 p.m. ET on Feb. 23 and the settlement date has been extended to March 2.

The invitation is not conditioned on any minimum participation of any series of old notes, but is conditioned on pricing and closing of an international capital markets transaction.

The notes include

• $500 million 4 7/8% notes due 2022 (Cusips: 29731QAA5, P37878AA6) with a purchase price in cash or new notes of $1,025 per $1,000 principal amount;

• $500 million 5.95% notes due 2023 (Cusips: 29731QAB3, P37878AB4) with a purchase price in cash or new notes of $1,053 per $1,000 principal amount; and

• $1 billion 4½% notes due 2028 (Cusips: 29731QAC1, P37878AC2) with a purchase price in cash or new notes of $898 per $1,000 principal amount.

Non-Bolivian eligible holders are only eligible to participate in the offers to purchase and are subject to withholding tax of 12.5% on the difference between the price to be paid by Bolivia and the original issue price. Bolivia will pay a gross price of $1,028.57 per $1,000 principal amount for the 2022 notes; $1,063.72 per $1,000 principal amount on the 2023 notes; and $898.00 per $1,000 principal amount on the 2028 notes and withhold tax of $3.57 per $1,000 principal amount on the 2022 notes; $10.72 per $1,000 principal amount on the 2023 notes; and $0.00 on the 2028 notes.

As a result, non-Bolivian eligible holders, whose old notes are validly tendered and accepted for purchase by Bolivia, will receive the purchase price for the applicable series of old notes.

Eligible holders of old notes must tender old notes by requesting that the direct participant through which the holder holds its old notes submit, at or prior to the expiration, such holder's offer to tender their old notes by properly instructing The Depository Trust Co. Inc., Euroclear Bank S.A./N.V. or Clearstream Banking Luxembourg, SA. Any holder that holds old notes through a custodian cannot submit an offer directly and should instead contact its custodian to instruct the direct participant to submit an offer.

The offer is subject to proration. If there is proration, Bolivia will multiply the principal amount of each valid tender of the relevant series of old notes by the applicable proration rate and round the resulting amount down to the nearest $1,000 principal amount to determine the principal amount that will be accepted

BofA Securities, Inc. (888 292-0070 or 646 855-8998), Goldman Sachs & Co. LLC (212 357-1452 or 800 828-3182) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) are the dealer managers.

Global Bondholder Services Corp. (212 430-3774 or 855 654-2015) is the information, tender and exchange agent.

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