Peru gives final results for offer to purchase sovereign, global bonds

By Toni Weeks

San Luis Obispo, Calif., Nov. 17 – The Republic of Peru announced the final results and settlement of its offer to purchase sovereign bonds and global bonds, which expired at 4 p.m. ET on Oct. 30.

According to a press release, the republic issued S/. 7,128,422,000 principal amount of its new 5.7% bonos soberanos due 2024, S/. 3,878,422,000 of which were allocated to holders who validly tendered their bonds in the tender offer and whose orders were accepted for new bonds.

The final principal amount of preferred and non-preferred tenders of each series of bonds that has been accepted and settled is as follows:

• S/. 848,227,000 of preferred tenders and S/. 89,048,000 of non-preferred tenders of 9.91% bonos soberanos due 2015;

• S/. 2,475,593,000 of preferred tenders and S/. 144,659,000 of non-preferred tenders of 7.84% bonos soberanos due 2020;

• $1,558,000 of preferred tenders and $5,585,000 of non-preferred tenders of 9 7/8% global bonds due 2015;

• $28.09 million of preferred tenders and $163,458,000 of non-preferred tenders of 8 3/8% global bonds due 2016; and

• $3.85 million of preferred tenders and $282,871,000 of non-preferred tenders of 7 1/8% global bonds due 2019.

As previously reported, the republic said it would issue S/. 7,411,589,000 principal amount of new 5.7% bonos soberanos due 2024, S/. 4,161,589,000 of which would be allocated to holders who tendered their bonds and whose orders were accepted for new bonds, including holders of global bonds denominated in dollars that participated in the preferred tender offers.

The tender offers began at 7:30 a.m. ET on Oct. 30 and ended at 1 p.m. ET the same day for holders who did not submit an indication of interest and 4 p.m. ET for holders who did submit an indication of interest.

As of the Oct. 31 expiration, the republic had decided to accept S/. 5,344,866,238 principal amount of bonds in its tender offer for S/. 10,734,113,000 of sovereign bonds, or bonos soberanos, and $1,859,603,000 of global bonds.

As already reported, the republic accepted

• S/. 1,163,727,000 of preferred tenders for its S/. 1,686,627,000 of outstanding 9.91% bonos soberanos due 2015 and S/. 91,423,000 of non-preferred tenders;

• S/. 2,437,675,000 of preferred tenders for its S/. 9,047,486,000 of outstanding 7.84% bonos soberanos due 2020 and S/. 244,404,000 of non-preferred tenders;

• $1,558,000 of preferred tenders for its $278,392,000 of outstanding 9 7/8% global bonds due 2015 and $3.21 million of non-preferred tenders;

• $28.09 million of preferred tenders for its $581,211,000 of outstanding 8 3/8% global bonds due 2016 and $163,458,000 of non-preferred tenders; and

• $3.85 million of preferred tenders for its $1 billion of outstanding 7 1/8% global bonds due 2019 and $282,901,000 of non-preferred tenders.

The purchase price paid for each S/. 1,000 or $1,000 principal amount of bonds is as follows:

• S/. 1,034 for the 9.91% bonos soberanos;

• S/. 1,162.50 for the 7.84% bonos soberanos;

• $1,023.75 for the 9 7/8% global bonds;

• $1,116.25 for the 8 3/8% global bonds; and

• $1,206.25 for the 7 1/8% global bonds.

The republic also paid accrued interest up to but excluding the settlement date, Nov. 6.

The amount of 7.84% bonos soberanos to be accepted was capped at 50% of the amount outstanding.

The offer was not conditioned on any minimum tender of any series of bonds, but it was conditioned on the pricing of a new issue of bonos soberanos.

BBVA Securities Inc. (international 212 728-2446 or in Peru +511 211-1343, liabilitymanagement@bbva.com), BofA Merrill Lynch (888 292-0070 or outside the United States, call collect 646 855-8988) and Morgan Stanley & Co. LLC (800 624-1808 or outside the United States, call collect 212 761-1057) were the joint dealer managers. BBVA Banco Continental and Morgan Stanley & Co. LLC were the Peruvian and international billing and delivering banks, respectively.

D.F. King & Co., Inc. (attn: Krystal Scrudato, 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.

© 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.