Cofide accepts tenders for $552.17 million of 2022, 2025 notes

By Taylor Fox

New York, Sept. 18 – Peru’s Corporacion Financiera de Desarrollo SA (Cofide) accepted for purchase $363.72 million of 4¾% notes due 2022 (Cusips: 21987DAA2, P31389AY8) and $188,452,000 of 4¾% notes due 2025 (Cusips: 21987DAD6, P3R94GAK5) tendered under its previously announced cash tender offer, according to a news release.

Cofide launched its offer on Sept. 2 to purchase the 2022 notes and 2025 notes for an aggregate maximum purchase price of $600 million. There was also a cap of $400 million for the 2022 notes, with the 2022 notes having priority in acceptance over the 2025 notes.

As previously reported, as of the early tender deadline at 5 p.m. ET Sept. 16, holders had tendered $363.72 million, or 72.74%, of the $500 million outstanding 2022 notes and $374,346,000, or 62.39%, of the $600 million outstanding 2025 notes.

As of the early tender time, the aggregate maximum purchase price was met. Because the offers were fully subscribed as of the early tender time, holders who tender their notes after the early tender time will not have any of their notes accepted for purchase, the company said.

Notes tendered before the early tender time have a higher priority over all notes tendered after the early tender time, as previously noted.

The offer is subject to proration. Notes will be accepted for payment based on their acceptance priority levels and tender caps.

The settlement date for the early tendered notes will be Sept. 21.

Total considerations

The 2022 notes will be purchased for a total consideration of $1,056.60 per $1,000 principal amount of notes, plus interest.

The 2025 notes have a total consideration of $1,144.50 per $1,000 face amount of notes, plus interest.

For each issue, the total consideration includes a $30.00 early tender payment for noteholders who validly tendered their notes by the early tender time.

Details

The offer is set to expire at 11:59 p.m. ET on Sept. 30. However, no notes tendered after the early deadline will be accepted for purchase.

The offers are conditioned upon a concurrent offering of senior notes by Cofide, expected to be a Rule 144A and Regulation S transaction.

D.F. King & Co., Inc is the information and tender agent for the tender offer (866 207-2324, 212 269-5550, cofide@dfking.com, www.dfking.com/cofide).

Dealer managers for the offer are HSBC Securities (USA) Inc. (888 HSBC-4LM, 212 525-5552) and J.P. Morgan Securities LLC (866 846-2874, 212 834-7279).

Cofide is a development bank based in Lima, Peru.

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