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Dominican Republic's Cerveceria Nacional offers to purchase 16% notes
By Angela McDaniels
Tacoma, Wash., April 7 - Cerveceria Nacional Dominicana, SA began a tender offer for its $165 million of 16% Dominican peso-linked senior notes due 2012, according to a company news release.
The total payment for each $1,000 principal amount of notes will be an amount in dollars equal to (i) the Dominican peso equivalent price of $1,056.25 - which corresponds to a Dominican peso-equivalent yield of 9.1866% calculated as of the expected settlement date - multiplied by (ii) a ratio equal to the original FX rate divided by the final FX rate.
The total payment includes an early tender payment of $30.00 per $1,000 principal amount of notes. This payment will only be made to holders who tender by 5 p.m. ET on April 20.
The company will also pay accrued interest in an amount equal to the nominal accrued interest up to but excluding the settlement date multiplied by the FX ratio.
The original FX rate is 32.7863 Dominican pesos per dollar, which was set when the notes were issued. The final FX rate will be the exchange rate for Dominican pesos per dollar on April 20.
The tender offer will expire at 5 p.m. ET on May 5. It is conditioned on the satisfaction of a financing condition, but it is not conditioned on any minimum number of notes being tendered.
The Santo Domingo, Dominican Republic, brewing company said the purpose of the tender offer is to improve its debt profile by extending the maturity profile of its outstanding debt and reducing interest and other financing costs.
The dealer manager is Citigroup Global Markets Inc. (212 723-6108 or 800 558-3745). The information and tender agent is D.F. King & Co., Inc. (212 269-5550 or 44 20 7920 9700 for banks and brokers, others call 888 644-5854).
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