By Marisa Wong
Los Angeles, Oct. 28 – Ecopetrol SA priced $2 billion of notes (expected: Baa3/BB+/BB+) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
Ecopetrol priced $1.25 billion of 4 5/8% notes due Nov. 2, 2031 at par to yield 4 5/8%, or a spread of 307.3 basis points to Treasuries.
The company also priced $750 million of 5 7/8% notes due Nov. 2, 2051 at par to yield 5 7/8%, or a spread of Treasuries plus 391.8 bps.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are the joint bookrunners.
The notes feature a make-whole call and then a par call.
The company intends to apply to list the notes on the New York Stock Exchange.
Proceeds will be used to prepay a portion of the $3,672,000,000 outstanding principal amount under an acquisition loan, as previously reported. In addition, the company expects to use cash on hand to pay accrued interest related to the acquisition loan and some expenses related to the notes offering.
The Bogota, Colombia-based petroleum company is 88.49% government-owned.
| Issuer: | Ecopetrol SA
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 2
|
| Expected ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BB+
|
| Listing: | New York Stock Exchange
|
| Distribution: | SEC registered
|
|
|
| 2031 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 2, 2031
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | Treasuries plus 307.3 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps prior to Aug. 2, 2031; par call after that
|
| Cusip: | 279158AP4
|
|
|
| 2051 notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 2, 2051
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | Treasuries plus 391.8 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps prior to May 2, 2051; par call after that
|
| Cusip: | 279158AQ2
|
|
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