Peru sets one-day tender offer for maximum amount of five note series

By Susanna Moon

Chicago, Oct. 30 – The Republic of Peru said it began a one-day tender offer for cash S/. 10,734,113,000 sovereign bonds, or bonos soberanos, and $1,859,603,000 of global bonds.

The purchase price for each S/. 1,000 or $1,000 of bonds covered by the offer is as follows:

• S/. 1,034 for the S/. 1,686,627,000 of 9.91% bonos soberanos due 2015;

• S/. 1,162.50 for the S/. 9,047,486,000 of 7.84% bonos soberanos due 2020;

• $1,023.75 for the $278,392,000 of 9 7/8% global bonds due 2015;

• $1,116.25 for the $581,211,000 of 8 3/8% global bonds due 2016; and

• $1,206.25 for the $1 billion of 7 1/8% global bonds due 2019.

The maximum purchase amount will be set later, according to a press release. The maximum amount of the 7.84% bonos soberanos due 2020 that Peru will purchase is 50% of the current amount outstanding.

The tender offer began at 7:30 a.m. ET on Oct. 30 and will run until 1 p.m. ET the same day for holders who do not submit an indication of interest and at 4 p.m. ET for holders who do submit an indication of interest, the release noted.

The company also will pay accrued interest up to but excluding the settlement date of Nov. 6.

BBVA, BofA Merrill Lynch and Morgan Stanley will serve as joint dealer managers for the offering. BBVA Banco Continental and Morgan Stanley & Co. LLC are acting as Peruvian and international billing and delivering banks, respectively.

D.F. King & Co., Inc. (attn: Krystal Scrudato, e-mail peru@dfking.com, banks and brokers call 866 796-1271, all others call 212 269-5550, +44 0 207 920 9700) is the information agent.

BBVA Securities Inc. (attention: liability management, international 212 728-2446 or in Peru +511 211-1343, e-mail liabilitymanagement@bbva.com), BofA Merrill Lynch (attn: liability management, 888 292-0070 or outside the United States, call collect 646 855-8988) and Morgan Stanley & Co. LLC (attn liability management, 800-624-1808 or outside the United States, call collect 212 761-1057) are the dealer managers.

The offer is conditioned on the pricing of a new issue of Peru’s bonos soberanos due 2024. The offer is not conditioned on any minimum tender of any series of bonds.

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