Paraguay begins tender offer to purchase 4 5/8% bonds due 2023

By Taylor Fox

New York, Jan. 20 – The Republic of Paraguay commenced an offer to purchase for cash its outstanding 4 5/8% bonds due 2023 such that the purchase price to be paid for the old bonds tendered and accepted for purchase under the tender offer is equal to a maximum purchase amount to be determined by Paraguay, according to a news release.

Holders who tender old bonds will receive $1,078.75 per $1,000 of bonds tendered and accepted plus interest.

The offer is not conditioned upon any minimum participation of old bonds but is conditioned, among other things, on the pricing, but not the closing, of a new issuance of Paraguay's bonds due 2033 and an additional issuance of Paraguay's existing 5.4% bonds due 2050.

Pricing on the new bonds is expected for 4 p.m. ET on Jan. 20.

The tender offer will expire at 12 p.m. ET on Jan. 20 for non-preferred tenders and will expire at 1 p.m. ET for preferred tenders.

Settlement is expected for Jan. 27.

Citigroup Global Markets Inc. is the billing and delivering bank for the offer; Global Bondholder Services Corp. (212 430-3774, 866 470-4200) is the information agent; and Citigroup Global Markets Inc. (212 723-0859, 800 558-3745), Itau BBA USA Securities, Inc. (212 710-6749, 888 770-4828) and Santander Investment Securities Inc. (212 761-1057, 800 624-1808) are the dealer managers.

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