Uruguay wraps exchange offer for 14 series of notes, expects to issue $123.98 million new bonds

By Jennifer Chiou

New York, June 25 - The Republic of Uruguay announced the completion of its exchange offer for 14 series of foreign-currency external bonds denominated in dollars and euros maturing on or prior to 2015.

Uruguay will issue dollar-denominated 7 5/8% bonds due 2036 for notes tendered under the exchange offer, adding that it will reopen the bonds at a spread of 235 basis points above the mid-market 30-year swap rate displayed on Bloomberg at 11 a.m. ET on Friday. These new 7 5/8% bonds will form a single series with Uruguay's outstanding $1.29 billion 7 5/8% bonds due 2036.

The reopening benchmark rate for the new 7 5/8% bonds is 5.018% and the reopening price was set at $1,029.65 per $1,000 principal amount.

Uruguay used a spot exchange rate of $1.575 per €1.00.

As a result of the tenders, Uruguay said that it will issue an preliminary amount of $123,975,000 of new bonds.

The exchange offer was made to qualified holders in the United States of at least $100,000 or €100,000 of bonds. Those who hold less than that could have participated in a concurrent cash tender offer.

In that offer, Uruguay said it will buy $10,359,830 €546,100 of bonds.

The bonds eligible for exchange were Uruguay's €43.3 million 7% bonds due 2011, €41.4 million 7% bonds due 2012, $47.53 million 7 7/8% bonds due 2008, $1.27 million 7 7/8% bonds due 2009, $4.29 million 7¼% bonds due 2009, $1.95 million 8¾% bonds due 2010, $103.41 million 7¼% bonds due 2011, $29.98 million 8 3/8% bonds due 2011, $1.96 million 7 5/8% bonds due 2012, $39.5 million 7% bonds due 2013, $6.8 million 7 7/8% bonds due 2014, $17.8 million 7¼% bonds due 2014, $392.4 million 7½% bonds due 2015 and $24.1 million 8¾% bonds due 2015.

The total outstanding principal amount of the bonds was equivalent to about $802.2 million.

Uruguay said that it accepted tenders for exchange for:

• €332,000 of 7% bonds due 2011 at a purchase price of €1,039.20;

• €3.24 million of 7% bonds due 2012 at a purchase price of €1,030.74;

• $137,500 of 7 7/8% bonds due 2008 at a purchase price of $1,016.33;

• $60,000 of 7 7/8% bonds due 2009 at a purchase price of $1,029.29;

• None of the 7¼% bonds due 2009 at a purchase price of $1,028.23;

• None of the 8¾% bonds due 2010 at a purchase price of $1,090.42;

• $11,559.711 of 7¼% bonds due 2011 at a purchase price of $1,075.02;

• $1.57 million of 8 3/8% bonds due 2011 at a purchase price of $1,118.29;

• $150,000 of 7 5/8% bonds due 2012 at a purchase price of $1,101.39;

• $464,854 of 7% bonds due 2013 at a purchase price of $1,085.24;

• $1.2 million of 7 7/8% bonds due 2014 at a purchase price of $1,134.55;

• $726,628 of 7¼% bonds due 2014 at a purchase price of $1,104.98;

• $100.52 million of 7½% bonds due 2015 at a purchase price of $1,126.92; and

• $3.34 million of 8¾% bonds due 2015 at a purchase price of $1,201.64.

The exchange offer and tender offer expired at 5 p.m. ET on June 26.

The fixed spread was 40 basis points for the euro-denominated bonds, 25 bps for the 7 7/8% bonds due 2008, 33 bps for the 7 7/8% bonds due 2009, 35 bps for the 7¼% bonds due 2009 and 8¾% bonds due 2010, 40 bps for the 7¼% bonds due 2011, 42 bps for the 8 3/8% bonds due 2011, 45 bps for the 7 5/8% bonds due 2012, 70 bps for the 7% bonds due 2013 and 75 bps for the 7 7/8% bonds due 2014, 7¼% bonds due 2014, 7½% bonds due 2015 and 8¾% bonds due 2015.

Citigroup Global Markets Inc. was the dealer manager, and Citibank NA was the exchange agent. The information agent was Global Bondholder Services Corp. (212 925-1630).

Those who participated tendered their bonds through participants in DTC, Euroclear or Clearstream, Luxembourg.

Uruguay also offered new 7 5/8% bonds and other securities in exchange for the same 14 series of bonds under a concurrent exchange offer to holders outside the United States and was offering new 7 5/8% bonds and other securities in exchange for selected debt securities under a concurrent exchange offer in Uruguay.

These offers also expired at 5 p.m. ET on June 26.

The eligible bonds for the offer in Uruguay included $566 million of dollar-denominated bonds governed by the laws of Uruguay and $1.54 billion of bonds that are denominated in Unidades Indexadas, are governed by the laws of Uruguay and are not eligible to be tendered in exchange for the new 7 5/8% bonds.

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