Uruguay plans exchange offer for 5% bonds, tender offer for 15 series

By Susanna Moon

Chicago, Dec. 5 - The Republic of Uruguay said it will offer new notes due 2028 in exchange for its Ps. 24,274,570,953 ($1.23 billion) outstanding principal amount of 5% global bonds due 2018.

The purchase price will be Ps.110.25 for each Ps.100 of notes accepted for exchange. The amount is adjusted for inflation and accrued interest, according to a press release.

The country also will spend up to $1 billion in cash tender offers for 15 series of notes, listed in the table below. If the offer is oversubscribed, the country will accept notes for purchase on a prorated basis.

Funding for the offer will come in part from the issue of up to $2 billion-equivalent of the global notes due 2028.

The exchange offer will likely be subject to the completion of the issuance of the notes due 2028.

Uruguay said it expects the cash tender offer to be conditioned on the issuance of the notes due 2028. The cash tender will not be conditioned on any minimum tender of notes.

Uruguay said it will not accept any offers for $4.8 billion-equivalent group B bonds unless it has accepted all $1.3 billion-equivalent outstanding group A bonds tendered.

Under the cash tender offer, Uruguay will pay the price indicated the table below for each $1,000 or €1,000 principal amount of notes.

The €8,404,706 of 7% bonds due September 2012 will multiplied by the amortization factor of 0.20.

Holders also will receive accrued interest up to but excluding the settlement date.

The country said it is conducting a series of liability management transactions to further improve its external debt profile.

Group A bonds Outstanding amount Purchase price

7% bonds due April 2013 $39,002,479 $1,085.00

7 7/8% bonds due March 2014 $5,576,268 $1,156.25

7¼% bonds due May 2014 $17,047,578 $1,146.25

7½% bonds due March 2015 $269,676,597 $1,186.50

8¾% bonds due June 2015 $20,470,469 $1,235.00

7 5/8% bonds due January 2017 $14,417,757 $1,240.00

9¼% bonds due May 2017 $457.4 million $1,337.50

7% bonds due September 2012 €8,404,706 €1,026.25

6 7/8% bonds due January 2016 €237.5 million €1,140.00

7% bonds due June 2019 €83,994,904 €1,135.00

Group B Bonds

8% bonds due November 2022 $1,804,863,225 $1,377.50

6 7/8% bonds due September 2025 $500 million $1,308.00

7 7/8% bonds due July 2027 $23.15 million $1,355.00

7 7/8% bonds due January 2033 $1,128,231,766.50 $1,392.50

7 5/8% bonds due March 2036 $1,420,630,899 $1,372.50

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