Ecopetrol gives early tender results for 5 7/8% notes due 2023

By William Gullotti

Buffalo, N.Y., Jan. 31 – Columbia’s Ecopetrol SA announced early tender results for its offer for up to $1 billion of its $1.8 billion of 5 7/8% senior notes due 2023 (Cusip: 279158AC3), according to a press release on Tuesday.

Ecopetrol received an aggregate principal amount of tendered notes totaling $976.186 million, all of which was accepted for purchase without proration.

As previously reported, the total consideration was set at $1,003.41 per $1,000 principal amount, based on the 1/8% U.S. Treasury note due Sept. 15, 2023 plus a spread of 45 basis points.

For each $1,000 principal amount of notes tendered, the total consideration includes a $30 early tender premium that will be paid to holders who tender by 5 p.m. ET on Jan. 30.

Tenders may no longer be withdrawn.

Notes tendered after the early deadline, but prior to the offer expiration at 11:59 p.m. ET on Feb. 13, may be subject to proration if the aggregate principal amount of tenders exceed the cap and the company does not elect to increase the maximum tender amount.

As previously reported, noteholders will also receive accrued interest to the settlement date, which remains expected to be Jan. 31 for early tenders and Feb. 15 for tenders submitted after the early date.

Global Bondholder Services Corp. (855 654-2014 or 212 430-3774) is the tender agent and information agent.

Citigroup Global Markets Group Inc. (800 558-3745 or 212 723-6106) is the dealer manager.

The petroleum company is based in Bogota, Colombia.

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