Uruguay tenders for four series of dollar, peso bonds until Thursday

By Susanna Moon

Chicago, Sept. 6 – The Republic of Uruguay said it began a tender offer to purchase four series of notes from 8 a.m. ET on Sept. 6 until 12 p.m. ET on Sept. 7 for non-preferred tenders and 2 p.m. ET on Sept. 7 for preferred tenders.

Settlement has been set to follow on Sept. 14.

The purchase price for each $1,000 or Ps. 1,000 principal amount will be as follows:

• 122.95% or $1,229.50 of the $563,703,939 8% global bonds due 2022;

• 111.20% or $1,112 of the $1,537,036,053 4½% global bonds due 2024;

• 102.3% or Ps. 1,023 of the Ps. 6,564,605,806, or Ps. 15,160,392,039.04 as adjusted, 5% global UI bonds due 2018; and

• 109.15% or Ps. 1,091.50 of the Ps. 12,135,000,000, or Ps. 27,026,844,704.59 as adjusted, 4¼% global UI bonds due 2027.

The principal amount will be adjusted by a factor of 2.314155655 for the 2018 UI bonds and 2.231754161 for the 2027 UI bonds. The adjustment factor for the 2018 UI bonds is the ratio of 3.6603, the value of the UI index at settlement, over 1.5817, the value of the UI index at the time of the bond issue. For the 2027 UI bonds, the ratio is 3.6603, or the value of the UI index at settlement over 1.6401, the value of the UI index at issue.

Holders other than those of the 2018 UI bonds will also receive any accrued interest up to but excluding the settlement date. The accrued interest for the 2027 UI bonds will be adjusted by the factor of 2.231754161 and an exchange rate of Ps. 28.730 to $1.00.

HSBC Securities (USA) Inc. is the billing and delivering bank.

Tender orders must be in principal amounts of at least $1.00 and integrals of $1.00 after that for the dollar bonds; of at least Ps. 1.00 and integrals of Ps. 1.00 after that for the 2018 UI bonds; and at least Ps. 1,000 and integrals of Ps. 1,000 after that for the 2027 UI bonds.

Bonds held through DTC must be delivered to the billing and delivering bank for settlement no later than 3 p.m. ET on the settlement date.

The dealer managers are Deutsche Bank Securities Inc. (212 250-7527 or 855 287-1922), HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM) and Santander Investment Securities Inc. (212 940-1442 or 855 404-3636).

Global Bondholder Services Corp. (212 430-3774, 866 807-2200 or gbsc-usa.com/uruguay/) is the information agent.

The tender is not conditioned upon any minimum participation but is conditioned on the pricing but not closing of a new peso-denominated bonds due March at about 1 p.m. ET on Sept. 7.

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