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Paraguay gives results of offer to purchase 5% bonds due 2026
By Mary-Katherine Stinson
Lexington, Ky., July 6 – The republic of Paraguay reported that its offer to purchase for cash its $527,125,000 outstanding 5% bonds due 2026 (Cusips: 699149AC4 and P75744AD7) was oversubscribed at the expiration of the offer and that tenders will be accepted on a prorated basis, according to multiple releases.
The tender offer expired at 5 p.m. ET on July 5.
As previously reported, the issuer had announced it would purchase bonds such that the purchase price to be paid for the old bonds tendered and accepted for purchase is equal to a maximum purchase amount to be determined by Paraguay.
The total purchase price for the tendered bonds was $302,200,483; Paraguay has accepted bonds for a maximum purchase price of $70,000,510 based on a proration factor of 23.2%.
As previously reported, Paraguay will pay $996.25 per $1,000 principal amount of the existing bonds accepted for purchase. Holders will also receive accrued interest.
After settlement, $456,861,000 of the bonds will remain outstanding.
When the offer was launched it was not conditioned upon any minimum participation of old bonds but is conditioned, among other things, on the closing of a new issuance of bonds due 2035.
Paraguay said on July 6 that it priced $500 million of new 5.85% bonds due 2033. Paraguay intends to use a portion of the proceeds to purchase the existing bonds accepted for purchase.
Settlement of the tender offer is expected on July 12.
Global Bondholder Services Corp. (212 430-3774, 855 654-2015) is the information agent.
Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and Itau BBA USA Securities, Inc. (212 710-6749) are the dealer managers.
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