Philippines to pay $1.23 billion to buy global bonds in tender offer

New York, Jan. 7 – The Philippines said that it will pay $1,226,563,000 to purchase global bonds in its one-day tender offer to buy back its debt.

The tender was announced late on Monday with a provision that the maximum purchase amount would be announced subsequently.

As previously disclosed, the Philippines said it would accept tenders up to the maximum purchase amount, which will be the total paid for the bonds excluding accrued interest.

Tendered bonds will be accepted by the Philippines as follows:

• $62,897,000 will be paid to buy back some of the $505 million of 8% bonds due Jan. 15, 2016. All tenders have been accepted. The tender price is $1,082.50 per $1,000 principal amount;

• $36,774,000 will be paid to buy back some of the $470 million of 8¾% bonds due Oct. 7, 2016. All tenders have been accepted. The tender price is $1,145.00 per $1,000 principal amount;

• $178,763,000 will be paid to buy back some of the $797 million of 9 3/8% bonds due Jan. 18, 2017. All tenders have been accepted. The tender price is $1,176.25 per $1,000 principal amount;

• $319,283,000 will be paid to buy back some of the $2,076,000,000 of 4% bonds due Jan. 15, 2021. All tenders have been accepted. The tender price is $1,096.25 per $1,000 principal amount;

• $354,423,000 will be paid to buy back some of the $1.5 billion of 5½% bonds due March 30, 2026. All tenders have been accepted. The tender price is $1,205.00 per $1,000 principal amount; and

• $274,423,000 will be paid to buy back some of the $2,385,000,000 of 7¾% bonds due Jan. 14, 2031. Tenders were accepted subject to a pro ration factor of 37.8%. The tender price is $1,467.50 per $1,000 principal amount.

The Philippines will also pay accrued interest up to but excluding the settlement date, which will be Jan. 12.

The principal amount of bonds to be purchased was not disclosed.

The Philippines was also tendering for but did not buy any of the following bonds.

• $861 million of 9 7/8% bonds due Jan. 15, 2019. The tender price is $1,311.25 per $1,000 principal amount;

• $1,238,000,000 of 8 3/8% bonds due June 17, 2019. The tender price is $1,275.00 per $1,000 principal amount;

• $985 million of 6½% bonds due Jan. 20, 2020. The tender price is $1,207.50 per $1,000 principal amount;

• $578 million of 7½% bonds due Sept. 25, 2024. The tender price is $1,331.25 per $1,000 principal amount;

• $348 million of 9½% bonds due Oct. 21, 2024. The tender price is $1,500.00 per $1,000 principal amount;

• $1,633,000,000 of 10 5/8% bonds due March 16, 2025. The tender price is $1,621.25 per $1,000 principal amount;

• $2 billion of 9½% bonds due Feb. 2, 2030. The tender price is $1,645.00 per $1,000 principal amount;

• $1.5 billion of 6 3/8% bonds due Jan. 15, 2032. The tender price is $1,330.00 per $1,000 principal amount; and

• $2,847,000,000 of 6 3/8% bonds due Oct. 23, 2034. The tender price is $1,357.50 per $1,000 principal amount.

The tender expired at 4 p.m. ET on Jan. 6.

Funding for the offer will come from a sale of new global bonds due 2040. The Philippines priced $2 billion of the bonds at par to yield 3.95% on Tuesday.

Holders who submitted indications of interest for the new global bonds received preferred treatment in the tender, and their offers to sell were accepted before non-preferred holders.

Deutsche Bank Securities Inc. (212 250-6801, +44 207 545 8011, +65 6423 5342 or liability.management@db.com) and Hongkong and Shanghai Banking Corp. Ltd. (888-HSBC-4LM, +852 2822 4100, +44 207 992 6237, 212 525 5552 or liability.management@hsbcib.com) are the dealer managers. D.F. King & Co., Inc. (rop@dfking.com, 212 269-5550, 877 361-7964, +44 20 7920 9700 or +632 8935 815/816) is the information agent.

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