Uruguay settles tenders for $1 billion of four global bond series

By Susanna Moon

Chicago, Aug. 16 - The Republic of Uruguay said it settled the tender offer for four series of bonds using $995,895,769.31 of proceeds from its recent notes issue.

The purchase price, including accrued interest, for the final tendered amounts is as follows, according to a press release:

• $1,608,722.33 for the $1,419,200 tendered 7½% global bonds due 2015;

• $55,026,449.40 for the $42,827,000 tendered 9¼% global bonds due 2017;

• $745,708,266.43 for the $564,239,968 tendered 8% global bonds due 2022; and

• $193,552,331.15 for the $153,189,804 tendered 6 7/8% global bonds due 2025.

The final tendered amounts for the 9¼% notes and the 8% notes differ from the initial tender offer results.

Uruguay said on Aug. 7 that it completed a tender offer for four series of bonds that began at 8 a.m. ET on Aug. 6 and ended at 4 p.m. ET the same day.

At the time, Uruguay said that investors had tendered and the issuer accepted the following principal amount of preferred tenders:

• $1,419,200 of the $166,807,618 of 7½% global bonds due 2015, all of which was accepted;

• $38,827,000 of the $96,017,000 of 9¼% global bonds due 2017, all of which was accepted;

• $569,949,931 of the $1,232,278,140 of 8% global bonds due 2022, all of which was accepted; and

• $252,621,716 of the $391,883,409 of 6 7/8% global bonds due 2025, of which $153,189,804 was accepted.

Of the non-preferred tenders, holders had tendered $1,389,000 of 7½% bonds, $7,161,000 of 9¼% bonds, $15,030,207 of 8% bonds and $1,067,800 of 6 7/8% bonds, the previous press release said. No non-preferred tenders were accepted.

The issuer set the maximum purchase amount at $1 billion. As previously announced, Uruguay offered to purchase for cash an aggregate principal amount of notes that will not result in a payment price that exceeds 50% of the principal amount of new bonds to be issued.

Uruguay sold $2 billion of 4½% notes due Aug. 14, 2024 at 99.833 on Aug. 6 to yield Treasuries plus 187.5 basis points, as previously reported by Prospect News.

The purchase price for each $1,000 principal amount was announced at 110.25 for the 7½% notes, 126.25 for the 9¼% bonds, 130.25 for the 8% bonds and 123.75 for the 6 7/8% bonds.

The tender offer was not conditioned on any minimum amount of tenders but was conditioned on completion of the new bond issue.

Holders also will receive accrued interest up to but excluding the settlement date of Aug. 13.

The information agent was Bondholder Communications Group, LLC (212 809-2663, attn: Rita Upton or email rupton@bondcom.com, or +44 0 20 7382 4580). The dealer managers were Deutsche Bank Securities Inc. (attn: liability management group, collect 212 250-7527, 866 627-0391), HSBC Securities (USA) Inc. (attn: global liability management group, collect 888 HSBC-4LM or 212 525-5552).

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