By Christine Van Dusen
Atlanta, Nov. 10 - The Republic of Peru priced a $2.5 billion-equivalent issue of notes due 2050 and 2020 via bookrunners Bank of America Merrill Lynch and Morgan Stanley, a market source said.
The deal included $1 billion 5 5/8% notes due Nov. 18, 2050 (Baa3/BBB-/BBB-), which priced at 96.164 to yield 5 7/8%, or Treasuries plus 160.3 basis points, in a Securities and Exchange Commission-registered transaction.
The tranche was talked at a yield in the 5 7/8% area.
Proceeds will be used to reimburse Peru's Public Treasury about $63 million in connection with the financing and tender offer of global bonds from April and to pre-finance a portion of the general financial requirements for the year 2011.
The deal also included a S/.4.196 billion tap of the sovereign's 7.84% bonds due Nov. 12, 2020 (Baa3/BBB+/BBB), which priced at 114.718 to yield 5¾% in a Rule 144A and Regulation S transaction, a market source said.
Price talk was set at the 5 7/8% area.
| Issuer: | The Republic of Peru
|
| Amount: | $2.5 billion equivalent
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley
|
| Trade date: | Nov. 10
|
|
|
| 40-year bonds
|
| Amount: | $1 billion
|
| Maturity: | Nov. 18, 2050
|
| Coupon: | 5 5/8%
|
| Price: | 96.164
|
| Yield: | 5 7/8%
|
| Spread: | Treasuries plus 160.3 bps
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Distribution: | Securities and Exchange Commission registered
|
| Price talk: | 5 7/8% area
|
|
|
| 10-year notes
|
| Amount: | S/.4.196 billion
|
| Maturity: | Nov. 12, 2020
|
| Coupon: | 7.84%
|
| Price: | 114.718
|
| Yield: | 5¾%
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5 7/8% area
|
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