Paraguay wraps offer, will buy $124.8 million 5% bonds due 2026 at par

By Mary-Katherine Stinson

Lexington, Ky., Feb. 12 – The Republic of Paraguay has determined the cap for its tender offer for its $456,861,000 outstanding 5% bonds due 2026 (Cusips: 699149AC4 and P75744AD7), according to multiple notices.

The company will accept $124.8 million out of the $261,121,000 tendered notes at a proration factor of 0.478.

The bonds will be purchased at par. Accrued interest will also be paid to the settlement date.

The tender offer was conditioned on the closing of a new series of dollar-denominated global bonds and a new series of guarani-denominated global bonds, both of which closed on Monday. Paraguay had priced $500 million of 6% bonds due 2036 and PYG 3,643,235,000,000 of 7.9% bonds due 2031. Paraguay intends to use a portion of the net proceeds from the new issues to purchase the existing bonds accepted for purchase.

The tender offer started Feb. 5 and expired at 5 p.m. ET on Feb. 9.

Settlement is planned for Feb. 15.

Global Bondholder Services Corp. is the tender and information agent (212 430-3774, 855 654-2015, contact@gbsc-usa.com, https://www.gbsc-usa.com/ paraguay).

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745), Goldman Sachs & Co. LLC (212 902-1905, 800 828-3182) and Itau BBA USA Securities, Inc. (212 710-6749) are the dealer managers.

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