Uruguay begins one-day tender for seven series of dollar, peso bonds

By Marisa Wong

Los Angeles, July 11 – Republic of Uruguay began an offer Tuesday morning to purchase for cash global bonds from seven series, up to a maximum purchase amount to be determined at its discretion.

The offer is broken down into three parts: global peso-denominated bonds, global dollar-denominated bonds and global UI bonds.

Uruguay is offering to purchase the following global peso-denominated bonds:

• UYU 31,603,000,000 outstanding 8½% bonds due 2028 (ISIN: US760942BC54) at a purchase price of UYU 963.75 per UYU 1,000 principal amount; and

• UYU 51,332,112,000 outstanding 8¼% bonds due 2031 (ISIN: US917288BM35) at a purchase price of UYU 933.75 per UYU 1,000 principal amount.

The republic is offering to purchase the following global dollar-denominated bonds:

• $626,958,314 outstanding (reflects the original principal amount multiplied by an amortization factor of 0.66666667) 4½% bonds due 2024 (ISIN: US760942AZ58) at a purchase price of $1,000 per $1,000 principal amount ($1,000 times the original principal amount multiplied by the amortization factor);

• $175,369,620 outstanding 6 7/8% bonds due 2025 (ISIN: US760942AX01) at a purchase price of $1,022.50 per $1,000 principal amount; and

• $1,425,609,956 outstanding 4 3/8% bonds due 2027 (ISIN: US760942BB71) at a purchase price of $993.50 per $1,000 principal amount.

The republic is offering to purchase the following global UI bonds:

• UYU 9,914,541,000 outstanding 4¼% bonds due 2027 (ISIN: US760942AU61) at a purchase price of UYU 1,035 per UYU 1,000 principal amount; and

• UYU 32,848,290,345 outstanding 4 3/8% bonds due 2028 (ISIN: US917288BD36) at a purchase price of UYU 1,058.75 per UYU 1,000 principal amount.

The company will also pay accrued interest.

Tenders may be subject to proration.

The tender offer is not conditioned on any minimum participation of any series of bonds but is conditioned on, among other things, the pricing (but not the closing) of a new issuance of peso-denominated global bonds maturing in 2033. The new bonds were expected to price around 2 p.m. ET on July 11.

Under each series, tenders made by holders of the old bonds who submit an indication of interest for the new bonds will be accepted before any other tenders for that series.

The tender offer began at 8 a.m. ET on July 11 and expired at noon ET on July 11 for non-preferred tenders and 2 p.m. ET on July 11 for preferred tenders.

All tender orders will be consolidated at or around 8 a.m. ET on July 12.

Settlement is slated for July 17.

Itau BBA USA Securities, Inc. is the billing and delivery bank for the tender offer.

The dealer managers are BofA Securities, Inc. (800 292-0070, 646 855-8988), Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745; ny.liabilitymanagement@citi.com) and Itau BBA USA Securities, Inc. (212 710-6749).

The information agent is Morrow Sodali International LLC (uruguay@investor.morrowsodali.com; 203 609-4910, +44 20 4513 6933; https://projects.morrowsodali.com/Uruguay).

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