Colombia’s Ecopetrol preps sale of dollar notes, one part add-on

By Mary-Katherine Stinson

Lexington, Ky., June 28 – Ecopetrol SA plans to sell two tranches of dollar-denominated fixed-rate senior notes (//BB+), one tranche being an add-on to its 8 7/8% senior notes due 2033, according to a 424B3 filing with the Securities and Exchange Commission.

The new notes will have a make-whole call option followed by a par call option as well as change-of-control protection at 101 plus interest.

The 2033 additional notes will be fully fungible with the $2 billion of 8 7/8% notes issued on Jan. 13.

As with the original issue, the 2033 add-on 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.

J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. are acting as bookrunners of the deal.

Bank of New York Mellon is the trustee.

The issuer will be advised by Shearman & Sterling LLP regarding New York law and Brigard & Urrutia Abogados SAS regarding Colombian law.

The bookrunners will be advised by Milbank LLP regarding U.S. law and Gomez-Pinzon Abogados SAS regarding Colombian law.

The company intends to apply to list the notes on the New York Stock Exchange.

The proceeds will be used to finance the company’s 2021-2023 investment plan and/or to finance other expenditures.

The Bogota, Colombia-based petroleum company is 88.49% government-owned.

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