Panama tenders for $2.25 billion of bonds

By Reshmi Basu

New York, Nov. 14 - The Republic of Panama announced Monday a cash tender offer to buy $2.25 billion of its global bonds. Additionally, the country said it would issue global bonds due 2026 to finance the tender offer.

Holders can exchange four types of bonds for cash at the following prices per $1,000 principal amount:

• $650 million of 8¼% notes due 2008 at $1082.50;

• $750 million of 9 5/8% global bonds due 2011 at $1185.00;

• $500 million of 9 3/8% global bonds due 2012 at $1190.00; and

• $350 million of 10¾% dollar-denominated global bonds due 2020 at $1380.00.

Panama will also pay accrued interest up to but excluding the settlement date.

The tender offer expires at 11 a.m. ET on Nov. 17. The results are expected to be announced at 10 a.m. ET on Nov. 18.

Citigroup is the manager (800 558-3745 or call collect 212 723-6108).

Remaining proceeds from the new deal will be used to manage the country's external liabilities.

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