| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Tenders > Headlines for 2006 > News item |
Colombia tender offer oversubscribed, pricing fixed
By Angela McDaniels
Seattle, Sept. 8 - Holders of nearly $1 billion of bonds tendered during The Republic of Colombia's tender offer on Thursday.
Securities eligible for tender included Colombia's $1.075 billion of 11¾% bonds due 2020, $180.762 million of 8 3/8% bonds due 2027 and $503.121 million of 10 3/8% bonds due 2033.
Under the offer, Colombia said it would buy back up to $500 million of bonds or up to a purchase price of $700 million. Because of the strong demand, the country accepted only 51.6% of the principal amount tendered. Adjustments will be made so that purchases will be made in integral multiples of $1,000.
The country accepted $285.278 million of the 11¾% bonds, $25.857 million of the 8 3/8% bonds and $183.125 million of the 10 3/8% bonds.
For each $1,000 principal amount of bonds tendered, holders will receive $1,425.21 for the 11¾% bonds, $1,149.87 for the 8 3/8% bonds and $1,386.98 for the 10 3/8% bonds.
Colombia determined the payment amount at 9 a.m. ET on Friday using a fixed spread over the yield to maturity of the 4½% Treasury due February 2036. The spreads for the 11¾% bonds, 8 3/8% bonds and 10 3/8% bonds were 193 basis points, 206 bps and 218 bps, respectively.
Investors who tendered will also receive accrued interest up to but excluding Sept. 19, the expected settlement date.
The tender period ran from 9 a.m. ET to 5 p.m. ET on Thursday.
The offer is conditioned on receiving sufficient funds from the country's sale of bonds due 2037.
Georgeson Inc. is the global information agent (866 857-2693, call collect 212 440-9800 or 44 870 703 6357). Kredietbank SA Luxembourgeoise is the Luxembourg information agent (352 4797 3935).
Goldman, Sachs & Co. (866 472-6622 or call collect 212 357-0601) and Merrill Lynch & Co. (888 ML4-TNDR or call collect 212 449-4914) are the dealer managers.
Following settlement, $789.722 million of the 11¾% bonds, $154.905 million of the 8 3/8% bonds and $320.996 million of the 10 3/8% bonds will remain outstanding.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.