Belize seeks to capitalize coupon payments on dollar bonds due 2034

By Wendy Van Sickle

Columbus, Ohio, July 20 – Belize said it is seeking consents from holders of its dollar bonds due 2034 (Cusips: 07782GAG8 and P16394AG6) to a capitalization of interest payments due on Aug. 20, Nov. 20 and Feb. 20, 2021, according to a news release.

“The outbreak of Covid-19 has hit the economy of Belize hard. The lockdown has already led to a contraction of 4.5% of GDP in Q1 of 2020 and the contraction during Q2 is expected to be far steeper,” Joseph Waight, Belize's financial secretary, said in the release.

“Regrettably, despite aggressive fiscal management actions, funds to meet the coupon payments on the bonds, scheduled for August 2020, November 2020 and February 2021 (which together represent 1.5% of GDP) will simply not be available. The measure we have proposed – a capitalization of interest coupons for a limited period – gives us the best chance of riding out this storm while not materially prejudicing the bondholders' position.”

Belize will pay holders who deliver consents and consent fee of 0.125% of the face amount of their bonds if the amendments become effective.

The consent solicitation will expire at 5 p.m. ET on Aug. 10.

Global Bondholder Services Corp. (212 430-3774, 866 794-2200 or info@gbsc-usa.com) is the information agent and tabulation agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.