Uruguay launches one-day tender offer for bonds due 2027, 2028, 2030

By Marisa Wong

Los Angeles, June 24 – The Republic of Uruguay said it has begun an offer to purchase for cash bonds from three series up to a maximum aggregate purchase price.

The tender offer began at 8 a.m. ET on June 24 and expires at noon ET on June 24 for non-preferred tenders and at 2 p.m. ET on June 24 for preferred tenders, according to a press release.

Uruguay is offering to purchase bonds from the following series, listed with the purchase price per Ps. 1,000 principal amount:

• Ps. 12,135,000,000 outstanding 4¼% global UI bonds due 2027 (ISIN: 760942AU61) at Ps. 1,040.00;

• Ps. 39,794,954,228 outstanding 4 3/8% global UI bonds due 2028 (ISIN: 917288BD36) at Ps. 1,056.23; and

• Ps. 14,650,498,361 outstanding 4% global UI bonds due 2030 (ISIN: P80557AD64) at Ps. 1,033.00.

In addition to the fixed purchase price, holders whose bonds are accepted in the tender offer will also receive accrued interest up to but excluding the settlement date.

Settlement of the tender offer is set to occur on July 1.

The nominal principal amount of old bonds tendered and accepted will be adjusted by a factor to reflect the increase of the UI index from the issuance date of the old bonds to the settlement date of the tender offer, the issuer noted.

The purchase price will be converted into dollars at an exchange rate of Ps. 42.816 to $1.00, which represents the average interbank exchange rate for the conversion of Uruguayan pesos into U.S. dollars.

The tender offer is not conditioned on any minimum participation of any series of old bonds but is conditioned on Uruguay pricing new peso-denominated global UI bonds. Terms for the new bonds are expected to be announced around 4 p.m. ET on Wednesday.

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745), HSBC Securities (USA) Inc. (212 525-5552, 888 472-2456) and Itau BBA USA Securities, Inc. (212 710-6749, 888 770-4828) are the dealer managers for the tender offer.

DF King & Co., Inc. (www.dfking.com/uruguay, 800 290-6426 or 212 269-5550) is the information agent.

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