Uruguay accepts tenders for UYU 9.2 billion bonds due 2027, 2028

By Marisa Wong

Los Angeles, June 25 – The Republic of Uruguay announced the results of its offer to purchase for cash bonds from three series up to a maximum aggregate purchase price.

The tender offer began at 8 a.m. ET on June 24 and expired at noon ET on June 24 for non-preferred tenders and at 2 p.m. ET on June 24 for preferred tenders.

Uruguay set the maximum purchase amount at UYU 2,220,459,000 principal amount for the 2027 bonds, UYU 6,976,291,729 principal amount for the 2028 bonds and zero principal amount for the 2030 bonds, according to a Thursday press release.

Holders had tendered the following:

• UYU 2,220,459,000 of the UYU 12,135,000,000 outstanding 4¼% global UI bonds due 2027 (ISIN: 760942AU61) as preferred tenders, all of which were accepted for purchase at UYU 1,040.00 per UYU 1,000 principal amount;

• UYU 14,590,675,000 of the UYU 39,794,954,228 outstanding 4 3/8% global UI bonds due 2028 (ISIN: 917288BD36) as preferred tenders, UYU 6,976,291,729 of which were accepted for purchase at UYU 1,056.23 per UYU 1,000 principal amount and UYU 892.47 million as non-preferred tenders, none of which were accepted for purchase; and

• UYU 5,176,470,000 of the UYU 14,650,498,361 outstanding 4% global UI bonds due 2030 (ISIN: P80557AD64) as preferred tenders, none of which were accepted for purchase. The purchase price would have been UYU 1,033.00 per UYU 1,000 principal amount.

In addition to the fixed purchase price, holders whose bonds are accepted in the tender offer will also receive accrued interest up to but excluding the settlement date.

Settlement of the tender offer is set to occur on July 1.

The nominal principal amount of old bonds tendered and accepted will be adjusted by a factor to reflect the increase of the UI index from the issuance date of the old bonds to the settlement date of the tender offer, the issuer noted.

The purchase price will be converted into dollars at an exchange rate of UYU 42.816 to $1.00, which represents the average interbank exchange rate for the conversion of Uruguayan pesos into U.S. dollars.

The tender offer was not conditioned on any minimum participation of any series of old bonds but is conditioned on Uruguay pricing new peso-denominated global UI bonds.

Uruguay priced UYU 68,505,600,000 of new 3 7/8% bonds due 2040 on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745), HSBC Securities (USA) Inc. (212 525-5552, 888 472-2456) and Itau BBA USA Securities, Inc. (212 710-6749, 888 770-4828) are the dealer managers for the tender offer.

D.F. King & Co., Inc. (www.dfking.com/uruguay, 800 290-6426 or 212 269-5550) is the information agent.

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