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Panama to issue $477.74 million of 9 3/8% bonds in exchange offer
By Susanna Moon
Chicago, June 4 - Republic of Panama said it expects to issue $477,743,000 principal amount of its 9 3/8% dollar-denominated global bonds due 2029 in its exchange offer announced on June 2.
The offer expired June 3 at 5 p.m. ET.
The 2029 bonds will be issued in exchange for accepted offers of $549,163,000 principal amount of the 9 5/8% global bonds due 2011 and 9 3/8% global bonds due 2012.
Panama said it accepted $262,308,000 principal amount of the 2011 bonds and $286,855,000 of the 2012 bonds in exchange for 2029 bonds.
The repurchase price was 115.432 for the 2011 bonds and was 119.624 for the 2012 bonds. The 2029 reopening price is 135.205.
Prices were based on the sum of the yields of reference U.S. Treasury notes:
• The 2 5/8% U.S Treasury notes due May 31, 2010 and 107 basis points for the 9 5/8% bonds;
• The 3½% U.S. Treasury notes due May 31, 2013 and 94 bps for the 9 3/8% bonds; and
• The 4 3/8% U.S. Treasury notes due Feb. 15, 2038 and 168 bps for the new 9 3/8% bonds.
The reference Treasury yields, set by Panama as of 11 a.m. ET, were 2.422% for the 2011 bonds, 3.199% for the 2012 bonds and 4.631% for the 2029 bonds.
Settlement is expected to occur on June 11. Upon the settlement, $977,743,000 principal amount of the 2029 bonds will be outstanding.
Panama has applied to list the newly issued 2029 bonds on the Luxembourg Stock Exchange and to trade the 2029 bonds on the Euro MTF Market.
Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 873-5600) is the information agent. Citibank, NA (44 20 7508 3866 or exchange.gats@citigroup.com) is the exchange agent, and Deutsche Bank Luxembourg, SA (352 42122 243) is the Luxembourg exchange agent.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6108) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) are the joint dealer managers.
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