Peru launches tender offer for sol-, dollar-, euro-denominated bonds

By Marisa Wong

Morgantown, W.Va., June 12 – The Republic of Peru said it launched an offer to purchase for cash some of its $6,395,672,000 outstanding dollar-denominated, €2.1 billion outstanding euro-denominated global bonds and S/. 5,886,504,000 outstanding sovereign bonds, or bonos soberanos, including bonos soberanos in the form of global depositary notes previously issued by Citibank NA as depositary.

The offer began at 8 a.m. ET on June 12 and expires at 11 a.m. ET on June 13.

The expiration time for preferred tenders, which may be submitted by holders of bonos soberanos, GDNs or dollar-denominated bonds, is 1 p.m. ET on June 13.

Peru expects to announce the maximum purchase amount at 9 a.m. ET on June 14.

The republic is offering to purchase the following bonds at the following prices per $1,000, €1,000 or S/. 1,000 principal amount:

• S/. 5,886,504,000 outstanding 5.2% bonos soberanos due 2023 and 5.2% GDNs due 2023 at S/. 1,068.16. Non-preferred tenders for the GDNs will be purchased at S/. 1,067.16, reflecting fees associated with the cancellation of the GDNs payable to Citibank;

• €1.1 billion outstanding 2¾% euro-denominated global bonds due 2026 at €1,133.38;

• €1 billion outstanding 3¾% euro-denominated global bonds due 2030 at €1,241.13;

• $1,792,780,000 outstanding 7.35% dollar-denominated global bonds due 2025 at $1,269.27;

• $1.25 billion outstanding 4 1/8% dollar-denominated global bonds due 2027 at $1,111.03;

• $2,188,329,000 outstanding 8¾% dollar-denominated global bonds due 2033 at $1,596.41; and

• $1,164,563,000 outstanding 6.55% dollar-denominated global bonds due 2037 at $1,391.73.

Holders will also receive an amount in cash equal to any accrued interest up to but excluding the settlement date on June 20.

Tenders may not be withdrawn.

The tender offer is not conditioned on any minimum participation by any series of bonds but is conditioned on the pricing and closing of a new bond offering.

HSBC Securities (USA) Inc. (866 HSBC-4LM, 212 525-5552, +44 20 7992 6237, liability.management@hsbcib.com), Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057), Santander Investment Securities Inc. (855 404-3636, 212 940-1442), Scotiabank Peru SAA (+511 211-6040, ext. 18151 or 18153, +511 207-2630, 212 225-5559) and Scotia Capital (USA) Inc. (800 372-3930) are the dealer managers.

Global Bondholder Services Corp. (212 430-3774, 866 470-3800, www.gbsc-usa.com/Peru/) is the information 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.