Bolivia begins tender, exchange offers for three series of notes due 2022, 2023, 2028

By Wendy Van Sickle

Columbus, Ohio, Feb. 10 – Bolivia began cash tender offers to purchase three series of notes from non-Bolivian eligible holders and to exchange the notes for new notes in the case of Bolivian entity holders, according to a news release.

The notes include

• $500 million 4 7/8% notes due 2022 (Cusips: 29731QAA5, P37878AA6) with a purchase price in cash or new notes of $1,025 per $1,000 principal amount;

• $500 million 5.95% notes due 2023 (Cusips: 29731QAB3, P37878AB4) with a purchase price in cash or new notes of $1,053 per $1,000 principal amount; and

• $1 billion 4½% notes due 2028 (Cusips: 29731QAC1, P37878AC2) with a purchase price in cash or new notes of $898 per $1,000 principal amount.

The invitation is not conditioned upon any minimum participation of any series but is conditioned, among other things, on the pricing and closing of an international capital markets transaction in an amount acceptable to Bolivia of one or more new series of notes, which will be consolidated with the new notes issued to settle the exchange portion of the invitation.

Bolivian entity offerees whose old notes are tendered and accepted for exchange in the exchange offers will receive an amount of new notes calculated by dividing the tender value by the new notes issue price. The tender value for a series equals the principal amount of old notes tendered multiplied by the purchase price for that series.

Bolivian entity offerees are subject to 25% income tax capital gains, which would be calculated pursuant to the year-end profit and loss statement and that Bolivian entity offerees' annual income tax statement.

Non-Bolivian eligible holders are only eligible to participate in the offers to purchase and are subject to withholding tax of 12.5% on the difference between the price to be paid by Bolivia and the original issue price. Bolivia will pay a gross price of $1,028.57 per $1,000 principal amount for the 2022 notes; $1,063.72 per $1,000 principal amount on the 2023 notes; and $898.00 per $1,000 principal amount on the 2028 notes and withhold tax of $3.57 per $1,000 principal amount on the 2022 notes; $10.72 per $1,000 principal amount on the 2023 notes; and $0.00 on the 2028 notes.

As a result, non-Bolivian eligible holders, whose old notes are validly tendered and accepted for purchase by Bolivia, will receive the purchase price for the applicable series of old notes.

The total purchase price for an amount of old notes tendered for purchase or exchange will equal the principal amount of such old notes tendered, multiplied by the applicable purchase price, plus accrued interest through the settlement date.

If the total purchase price for all validly tendered old notes, not including accrued interest, would exceed the maximum aggregate purchase price, which was unspecified, Bolivia will select one or more series of old notes to be prorated on the basis of the same or different proration factors.

The offer will expire at 9 a.m. ET on Feb. 17.

BofA Securities, Inc. (888 292-0070 or 646 855-8998), Goldman Sachs & Co. LLC (212 357-1452 or 800 828-3182) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) are the dealer managers.

Global Bondholder Services Corp. (212 430-3774 or 855 654-2015) is the information, tender and exchange agent.

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