Panama to price add-on to 6.853% bonds due 2054, new bonds due 2036

By Mary-Katherine Stinson

Lexington, Ky., Sept. 27 – The Republic of Panama is planning to offer additional 6.853% global bonds due March 28, 2054 (ISIN: US698299BV52) and new global bonds due 2036, according to a 424B3 filed with the Securities and Exchange Commission.

The 2054 bonds will be a further issuance of and will be consolidated to form a single series with the $1 billion outstanding 6.853% bonds due 2054 that were issued on March 28 and will be fully fungible with the existing 2054 bonds.

For the 2036 bonds, there will be a make-whole call until three months before the maturity date, after which there will be a par call. For the 2054 bonds, there will be a make-whole call at Treasuries plus 50 basis points until Sept. 28, 2053, six months prior to maturity, followed by a par call.

The global bonds will be designated aggregated collective action securities and will contain provisions regarding future modifications to the terms of the global bonds that differ from those applicable to Panama’s outstanding public external debt issued prior to March 16, 2015. Panama may amend certain key terms of the global bonds, including the maturity date, interest rate and other payment terms without bondholder consent.

BofA Securities, Inc. and UBS Investment Bank are the joint bookrunners.

Bank of New York Mellon is the fiscal agent.

Legal advisers for Panama are in-house counsel and Arnold & Porter Kaye Scholer LLP as U.S. counsel.

Sullivan & Cromwell LLP will act as U.S. counsel for the underwriters, and Arias, Fabrega & Fabrega is advising on Panamanian matters.

Proceeds will be used for general budgetary purposes.

Listing will be on the Luxembourg Stock Exchange.

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