Colombia buys $469 million of bonds in tender offer

New York, Sept. 19 - The Republic of Colombia announced final results in its tender offer, saying it bought $468.41 million of bonds.

The South American nation bought $278.941 million of its 11¾% bonds due 2020, $25.857 million of its 8 3/8% bonds due 2027 and $163.61 million of its 10 3/8% bonds due 2033.

Those final figures are slightly below the response announced on Sept. 8, when Colombia said it had accepted $285.278 million of the 11¾% bonds, $25.857 million of the 8 3/8% bonds and $183.125 million of the 10 3/8% bonds.

On Sept. 8, Colombia said nearly $1 billion had been tendered and added that because of the strong demand it accepted only 51.6% of the principal amount tendered. Adjustments will be made so that purchases will be made in integral multiples of $1,000.

The tender leaves $796.059 million of the original $1.075 billion of 11¾% bonds outstanding, $154.905 million of the $180.762 million 8 3/8% bonds and $340.511 million of the $503.121 million 10 3.8% bonds.

As previously announced, for each $1,000 principal amount of bonds tendered, holders will receive $1,425.21 for the 11¾% bonds, $1,149.87 for the 8 3/8% bonds and $1,386.98 for the 10 3/8% bonds.

Colombia determined the payment amount at 9 a.m. ET on Sept. 8 using a fixed spread over the yield to maturity of the 4½% Treasury due February 2036. The spreads for the 11¾% bonds, 8 3/8% bonds and 10 3/8% bonds were 193 basis points, 206 bps and 218 bps, respectively.

Investors who tendered will also receive accrued interest up to but excluding Sept. 19, the settlement date.

The tender period ran from 9 a.m. ET to 5 p.m. ET on Sept. 7.

Georgeson Inc. is the global information agent (866 857-2693, call collect 212 440-9800 or 44 870 703 6357). Kredietbank SA Luxembourgeoise is the Luxembourg information agent (352 4797 3935).

Goldman, Sachs & Co. (866 472-6622 or call collect 212 357-0601) and Merrill Lynch & Co. (888 ML4-TNDR or call collect 212 449-4914) are the dealer managers.

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