Colombia to set maximum purchase amount in tender offer

By Rebecca Melvin

New York, Jan. 13 – The Republic of Colombia said the maximum purchase amount of its capped tender offer to purchase for cash its 4 3/8% global bonds due 2021, 4% global bonds due 2024, 4˝% global bonds due 2026 and 3 7/8% global bonds due 2027 will be announced later Wednesday, according to an announcement.

The sovereign’s billing and delivering bank J.P. Morgan is expected to accept the tenders subject to proration and other terms and conditions as described in the Jan. 12 offer to purchase valid reinvestment and simple tenders of four series of notes.

As previously reported, holders who validly tender its 2021 notes (Cusip: 195325BN4), of which there is $1,485,568,000 principal amount outstanding, will receive the fixed price of $1,109.28 per $1,000 principal amount of notes.

Holders who validly tender their 2024 notes (Cusip: 195325BQ7), of which there is $2.1 billion principal amount outstanding, will receive $1,081.50.

Holders who validly tender 2026 notes (Cusip: 195325CX1), of which there is $1.5 billion principal amount outstanding, will receive $1,127.50.

And holders who validly tender 2027 notes (Cusip: 195325DL6), of which there is $2.4 billion principal amount outstanding, holders will receive $1,109.00 per bond.

Holders will also receive any accrued and unpaid interest on their old bonds up to but excluding the settlement date scheduled to occur on Jan. 20.

Colombia also priced new notes 2061 and an add-on to its 2031 notes. Of the newly priced 2031 bonds about $749,952,000 are intended to fund the purchase of tender orders made by holders, who submitted an equivalent-sized indication of interest for the 2031 bonds prior to the pricing of the new bonds.

Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653), Deutsche Bank Securities Inc. (212 250-2955 or 866 627-0391) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) are dealer managers of the tender offer. JPMorgan is the billing and delivery bank.

D.F. King & Co. Inc. (212 269-5550, 877 896-3199, colombia@dfking.com) is the information agent.

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