Belize receives tenders for 86.2% of 2029 step-up bonds in exchange

New York, March 8 - The Government of Belize declared its exchange offer for its U.S. dollar step-up bonds due 2029 "successful" after receiving tenders for 86.2% of the securiteis, according to a news release.

Holders will receive new bonds that will mature in 2038, with equal semiannual principal payments beginning in August 2019.

As announced on Feb. 15, the new bonds will bear interest at 5% from March 20 through Aug. 19, 2017. After that, the rate will increase to 6.767%.

Holders will receive $970.83 principal amount of new bonds for each $1,000 principal amount of new bonds tendered.

Belize said the principal amount reflects the sum of $900, representing the 2029 bond reduced by 10%, and $70.83, representing interest accrued through March 19. Interest on the new bonds will start to accrue on March 20.

Belize required that it receives tenders for at least 75% of the outstanding 2029 bonds.

If the 75% threshold is reached, however, Belize said it will prompt a reserve matter modification of the 2029 bonds under which all of the 2029 bonds, even those held by holders who elected not to participate in the offer, will be exchanged for new bonds.

The exchange ended at 5 p.m. ET on Friday. The transaction is expected to close and the new bonds to be issued on March 20.

Citibank was exchange 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.