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Venezuela’s PDVSA extends exchange offer for 5¼%, 8½% notes to Oct. 17
By Angela McDaniels
Tacoma, Wash., Oct. 12 – Petroleos de Venezuela, SA extended the exchange offer for its $3 billion of 5¼% senior notes due 2017 and its $4.1 billion of 8½% notes due 2017, according to company news release.
The early tender deadline and the expiration date were both extended to 5 p.m. ET on Oct. 17.
The early tender deadline was previously 5 p.m. ET on Oct. 12, and the expiration date was 11:59 p.m. ET on Oct. 14.
The offer is contingent upon holders tendering at least half of the existing notes in the exchange. As of the previous early deadline, “substantially less” than 50% of the notes had been tendered, the company said.
On Sept. 27, the company increased the cap in the exchange and extended the early deadline.
PDVSA is now offering to issue up to $5,325,000,000 of new 8½% senior secured notes due 2020, which is about 75% of the total amount of existing notes.
The company also boosted the total exchange value for each $1,000 principal amount of notes tendered for exchange by the early tender deadline as follows:
• $1,170 for the 5¼% notes due April 2017, increased from par; and
• $1,220 for the 8½% notes due November 2017, also increased from par.
Each total purchase price includes an early tender premium of $50 per $1,000 principal amount, which will now be payable to all holders since the early tender deadline was extended to coincide with the expiration date.
The new notes will be secured by a first-priority security interest on 50.1% of the capital stock of Citgo Holding, Inc. and unconditionally and irrevocably guaranteed by PDVSA Petroleo, SA.
Principal on the new notes will be paid annually in four equal installments, starting one year after settlement.
D.F. King & Co., Inc. (https://sites.dfkingltd.com/pdvsa, 800 431-9646, 212 269-5550, +44 20 7920 9700 or pdvsa@dfkingltd.com) is information agent and exchange agent.
PDVSA is a Caracas, Venezuela-based oil and gas company.
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