By Mary-Katherine Stinson
Lexington, Ky., Jan. 11 – Ecopetrol SA sold $2 billion of 8 7/8% senior notes (Baa3/BB+/BB+) due Jan. 13, 2033, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.187 to yield 9%, or at a spread of 538.5 basis points over Treasuries.
The notes have a make-whole call option in whole or in part anytime at Treasuries plus 50 bps. On or after Oct. 13, 2032, they are callable at par.
Any change of control makes the notes putable at 101 plus interest.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are acting as bookrunners of the SEC-registered deal.
The proceeds will be used to prepay the remaining outstanding principal amount under an acquisition loan and for general corporate purposes including financing the company’s investment plan.
The notes will be listed on the New York Stock Exchange.
The Bogota, Colombia-based petroleum company is 88.49% government-owned.
| Issuer: | Ecopetrol SA
|
| Amount: | $2 billion
|
| Issue: | Senior notes
|
| Maturity: | Jan. 13, 2033
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
|
| Counsel to issuer: | Shearman & Sterling LLP (New York) and Brigard & Urrutia Abogados SAS (Colombian)
|
| Counsel to underwriters: | Milbank LLP (U.S.) and Gomez-Pinzon Abogados SAS (Colombian)
|
| Coupon: | 8 7/8%
|
| Price: | 99.187
|
| Yield: | 9%
|
| Spread: | Treasuries plus 538.5 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps; on or after Oct. 13, 2032 at par
|
| Change of control: | At 101
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 13
|
| Ratings | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Cusip: | 279158AS8
|
|
|
© 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.
