Montenegro gives tender, exchange results so far for 7 7/8%, 7¼% notes

By Marisa Wong

Madison, Wis., May 13 - Montenegro, acting through its Ministry of Finance, announced indicative results of the tender and exchange offers for its outstanding €200 million of 7 7/8% notes due 2015 and €180 million of 7¼% notes due 2016.

As of 11 a.m. ET on May 12, the expiration time of the offers, holders had tendered about €787,000 of the 7 7/8% notes and €1.3 million of the 7¼% notes. The issuer said it expects to accept all of the tendered notes for purchase.

As of the expiration time, holders had also submitted €44,853,000 of the 7 7/8% notes and €36,904,000 of the 7¼% notes for exchange. The issuer expects to accept all of the notes submitted and issue about €85 million of new notes in exchange.

Pricing of the new notes is scheduled for 9 a.m. ET on Tuesday, with the pricing details and final results of the offers to be disclosed soon after.

The offers began on April 30, and settlement is set for May 20.

As previously announced, holders could either exchange their notes for new euro-denominated fixed-rate notes or offer to sell their notes for a cash payment.

The offer price is €1,035 per €1,000 principal amount of notes tendered or submitted for exchange.

The company also will pay accrued interest to but excluding the settlement date.

In the exchange offer, holders had to tender enough notes to be able to receive at least the minimum denomination of €100,000 notes.

In the tender offer, holders had to tender for purchase a minimum of €50,000 principal amount of the 7 7/8% notes, and integral multiples of €1,000 after that, and a minimum of €100,000 principal amount of the 7¼% notes, and integral multiples of €1,000 after that.

The dealer managers are Citigroup Global Markets Ltd. (44 (0) 20 7986 8969, attn.: liability management group, liabilitymanagement.europe@citi.com), Deutsche Bank AG, London Branch (44 (0) 20 7545 8011, attn.: liability management group, liability.management@db.com) and Erste Group Bank AG (43 (0) 5 0100 87492, attn.: Mladen Djurdjevic, syndicate, fax 43 (0) 5 0100 987492, mladen.djurdjevic@erstegroup.com).

The tender and exchange agent is Citibank, NA (44 207 508 3867, fax 44 203 320 2405, exchange.gats@citi.com).

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