Montenegro begins tender, exchange offers for 7 7/8% notes, 7¼% notes

By Susanna Moon

Chicago, April 30 - Montenegro, acting through its Ministry of Finance, began a tender and exchange offer for its outstanding €200 million of 7 7/8% notes due 2015 and €180 million of 7¼% notes due 2016.

Holders may either exchange their notes for new euro-denominated fixed-rate notes or offer to sell their notes for a cash payment, according to a press release.

The offers will end at 11 a.m. ET on May 12, with settlement set for May 20.

As of Wednesday, holders planned to tender about €32.5 million principal amount of 7 7/8% notes and €17 million principal amount of 7¼% notes in the offers, the release noted.

The offers are conditioned on the issue of new notes.

The offer price will be €1,035 per €1,000 principal amount of notes tendered or submitted for exchange.

The company also will pay accrued interest to but excluding the settlement date.

In the exchange offer, holders must tender enough notes to be able to receive at least the minimum denomination of €100,000 notes.

In the tender offer, holders must tender for purchase a minimum of €50,000 principal amount of the 7 7/8% notes, and integral multiples of €1,000 after that, and a minimum of €100,000 principal amount of the 7¼% notes, and integral multiples of €1,000 after that.

The issuer said it is conducting the offers because doing so is sound debt and liquidity management.

New issue pricing

The issuer said it expects to announce the minimum yield and the maturity of the new notes at about 5 a.m. ET on May 8. The new issue yield will be set at about 7 a.m. ET on May 13.

The new issue price and coupon will be set using the new issue yield, and the exchange ratio will be calculated by dividing the exchange price by the new issue price.

The new notes will be issued in minimum denominations of €100,000 and integral multiples of €1,000 after that.

The dealer managers are Citigroup Global Markets Ltd. (44 0 20 7986 8969, attn.: liability management group, email: liabilitymanagement.europe@citi.com), Deutsche Bank AG, London Branch (44 (0) 20 7545 8011, attn.: liability management group, email liability.management@db.com) and Erste Group Bank AG (43 0 5 0100 87492, attn.: Mladen Djurdjevic, syndicate, fax 43 0 5 0100 987492, or email mladen.djurdjevic@erstegroup.com).

The tender and exchange agent is Citibank, NA (44 207 508 3867, fax 44 203 320 2405, email exchange.gats@citi.com).

© 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.