Dominican Republic gets 93.64% participation in $1.11 billion exchange offer

By Reshmi Basu

New York, May 10 - The Dominican Republic received 93.64% participation in its $1.11 billion debt exchange of old securities for new bonds, according to final results announced late Monday.

As part of the swap, the government sought to extend final bond maturities by five years while leaving principal and coupon rates unchanged.

The total principal of old bonds swapped totaled $1.03 billion or a 93.64% participation rate, according to the government release. The exchange exceeded the 85% threshold required by the government to complete the offer.

The government said that of the $500 million of 2006 bonds outstanding, $456 million were exchanged for the new 9½% amortizing bonds due 2011 or a 91.2% participation rate.

Of the $600 million of the 2013 bonds outstanding, $574 million were exchanged for the new 9.04% amortization bonds due 2018 or a 95.7% participation rate.

The new issues are scheduled to settle on May 11.

According to an analyst note, the exchange can be called a success given the high participation rate.

The deal leaves $70 million in original bonds outstanding, of which $44 million will come due in September 2006. But the note said that the government would be able to service the very manageable level of debt.

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