By Rebecca Melvin
Concord, N.H., June 24 – The Republic of Panama priced a $750 million add-on to its 4˝% global bonds due April 16, 2050 (Baa2/BBB/BBB-) at 112.383 and with a yield spread of 165 basis points over Treasuries, on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The bonds will constitute a further issuance of $1.2 billion of the bonds issued April 16, 2018, and the $550 million of bonds issued on Oct. 25, 2018.
The bonds are optionally callable with a Treasuries plus 25 bps make-whole premium plus accrued and unpaid interest until Oct. 16, 2049, at which time they are optionally redeemable at par.
HSBC Securities (USA) Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are the underwriters.
Proceeds will be used for general budgetary purposes.
| Issuer: | Panama
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| Issue: | Global bonds
|
| Amount: | $750 million
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| Maturity: | April 16, 2050
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| Underwriters: | HSBC Securities (USA) Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
|
| Coupon: | 4˝%
|
| Price: | 112.383
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| Yield: | 3.774%
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| Spread: | Treasuries plus 165 bps
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| Call option: | Prior to Oct. 16, 2049, make-whole call at Treasuries plus 25 bps; after that, par
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| Pricing date: | June 23
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| Settlement date: | June 30
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| Expected ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Total deal size: | $2.5 billion
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