By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., March 22 – The Republic of Panama priced an add-on to its bonds due 2035 and sold new bonds due 2054 (Baa2/BBB/BBB-), according to a market source and multiple FWPs.
The $800 million add-on to its 6.4% global bonds due Feb. 14, 2035 priced at 101.961 to yield 6.161%, or at Treasuries plus 255 basis points after price talk in the Treasuries plus 287.5 bps area. The price also includes accrued interest of $7.822 per $1,000 bond, representing accrued interest from Feb. 14 to March 28, and any additional interest from March 28.
There will be a make-whole call option until three months before the maturity date, prior to Nov. 14, 2034, at Treasuries plus 40 bps after which there will be a par call option.
The original $1.5 billion issue priced on Nov. 15.
The $1 billion 6.853% global bonds due March 28, 2054 priced at par plus accrued interest, if any, from March 28, or at Treasuries plus 312.5 bps after price talk in the Treasuries plus 350 bps area.
The bonds feature a make-whole call option at Treasuries plus 50 bps until Sept. 28, 2053 and then a par call.
Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc. are the bookrunners for both transactions.
The order book went over $9.5 billion from 260 investors.
Proceeds will be used for general budgetary purposes and liability management transactions.
| Issuer: | Republic of Panama
|
| Amount: | $1.8 billion
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| Issue: | Senior global bonds
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| Bookrunners: | Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc.
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| Pricing date: | March 21
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| Settlement date: | March 28
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB-
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| Distribution: | SEC registered
|
|
|
| 2035 add-on
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| Amount: | $800 million
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| Maturity: | Feb. 14, 2035
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| Coupon: | 6.4%
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| Price: | 101.961
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| Yield: | 6.161%
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| Spread: | Treasuries plus 255 bps
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| Call features: | Make-whole call at Treasuries plus 40 bps prior to Nov. 14, 2034, then a par call
|
| Price talk: | Treasuries plus 287.5 bps area
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| Cusip: | 698299BT0
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| Total issue: | $2.1 billion with $1.5 billion issued on Nov. 21
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| 2054 bonds
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| Amount: | $1 billion
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| Maturity: | March 28, 2054
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| Coupon: | 6.853%
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| Price: | Par
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| Yield: | 6.853%
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| Spread: | Treasuries plus 312.5 bps
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| Call features: | Make-whole call at Treasuries plus 50 bps prior to Sept. 28, 2053; then a par call
|
| Price talk: | Treasuries plus 350 bps area
|
| Cusip: | 698299BV5
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