Colombia to solicit tenders for nine series of bonds

By Laura Lutz

Des Moines, June 12 - The Republic of Colombia plans to launch a tender offer for nine series of its bonds.

The offer includes Colombia's 8 5/8% bonds due 2008, 11¾% global TES bonds due 2010, 9¾% bonds due 2011, floating-rate notes due 2013, 9¾% bonds due 2009, 10½% bonds due 2010, 10% bonds due 2012, 10¾% bonds due 2013 and 8.7% bonds due 2016.

In total, there is about $4.7 billion principal amount of the bonds currently outstanding.

The total principal amount of notes purchased in the tender will not exceed $800 million, and the total purchase price will not exceed $950 million.

The offer is expected to begin at 8 a.m. ET on June 13 and expire at 4 p.m. ET on June 14.

For each $1,000 principal amount of notes, the company will pay $1,026 for the 8 5/8% bonds, $1,082.50 for the 9¾% bonds due 2011 and $1,125 for the floating-rate notes. For each 1,000 Columbian pesos of the 11¾% bonds, the payout will be Ps. 1,068.75.

The payouts for the remaining notes will be calculated on the business day following the day on which the bonds are tendered.

For the 9¾% bonds due 2009, the payout will be based on the 4 7/8% U.S. Treasury due 2009 plus 25 basis point; for the 10½% bonds, it will be based on the 4½% Treasury due 2010 plus 32 bps; for the 10% bonds, it will be based on the 4¾% Treasury due 2012 plus 60 bps; for the 10¾% bonds, it will be based on the 4¾% Treasury plus 65 bps; and for the 8.7% bonds, it will be based on the 4½% Treasury due May 2017 plus 90 bps.

The company will also pay accrued interest for the notes.

The offer will be ended early if the maximum purchase amount of bonds is received before the scheduled expiration.

Settlement of the offer depends on closing of Colombia's planned issue of global TES bonds due 2027. Settlement does note depend on receipt of any minimum amount of tenders.

Holders may not withdraw tenders once they are submitted.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6108) and Deutsche Bank Securities Inc. (866-627-0391 or 212 250-2955) are dealer managers. Global Bondholder Services Corp. (866 804-2200 or 212 430-3774) is the information agent. Dexia Banque Internationale a Luxembourg, SA (352-45901) is the Luxembourg tender agent.

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