Philippines to pay $1.5 billion in one-day tender for 16 note series

New York, Feb. 18 – Republic of the Philippines set the maximum purchase amount at $1,500,056,482.50 in its one-day tender offer for 16 series of notes.

The maximum purchase amount is the total that the sovereign will pay to buy the bonds.

The Philippines also said it will buy all tendered notes from four series and part of the notes tendered in a fifth series.

Only preferred offers will be accepted. No non-preferred offers are being purchased.

The tender ended at 4 p.m. ET on Feb. 17.

The results are as follows:

• $21,364,781.25 will be paid to purchase all the preferred offers of the $433 million 8¾% bonds due Oct. 7, 2016. The purchase price is $1,053.75 per $1,000 principal amount;

• $104,010,270.00 will be paid to purchase all the preferred offers of the $618 million 9 3/8% bonds due Jan. 18, 2017. The purchase price is $1,085.00 per $1,000 principal amount;

• $212,594,562.50 will be paid to purchase all the preferred offers of the 6½% bonds due Jan. 20, 2020. The purchase price is $1,187.50 per $1,000 principal amount;

• $487,687,768.75 will be paid to purchase all the preferred offers of the $1.5 billion 6 3/8% bonds due Jan. 15, 2032. The purchase price is $1,348.75 per $1,000 principal amount; and

• $674,399,100.00 will be paid to purchase 50.6% of the preferred offers of the $2,847,000,000 6 3/8% bonds due Oct. 23, 2034. The purchase price is $1,380.00 per $1,000 principal amount.

The Philippines will not purchase any of the following bonds that were covered by the tender offer at the following purchase prices:

• $1,243.75 for the $861 million for the 9 7/8% bonds due Jan. 15, 2019;

• $1,227.50 for the $1,238,000,000 8 3/8% bonds due June 17, 2019;

• $1,106.25 for the $1,759,000,000 4% bonds due Jan. 15, 2021;

• $1,127.50 for the $1.5 billion 4.2% bonds due Jan. 21, 2024;

• $1,335.00 for the $578 million 7½% bonds due Sept. 25, 2024;

• $1,512.50 for the $348 million 9½% bonds due Oct. 21, 2024;

• $1,611.25 for the $1,633,000,000 10 5/8% bonds due March 16, 2025;

• $1,230.00 for the $1,146,000,000 5½% bonds due March 30, 2026;

• $1,660.00 for the $2 billion 9½% bonds due Feb. 2, 2030;

• $1,492.50 for the $2.11 billion 7¾% bonds due Jan. 14, 2031; and

• $1,222.50 for the $1.5 billion 5% bonds due Jan. 13, 2037.

In addition to all the purchase prices shown, the issuer also will pay accrued interest up to but excluding the settlement date.

The tender began at 8 p.m. ET on Feb. 16 and ended at 4 p.m. ET on Feb. 17, according to a tender notice.

Preferred offers had to be of at least $200,000 and in integral multiples of $1,000 after that. For non-preferred offers, the minimum denomination is $1,000 for the 8¾% bonds due Oct. 7, 2016, the 9 3/8% bonds due Jan. 18, 2017 and the 9 7/8% bonds due Jan. 15, 2019; $100,000 for the June 2019 bonds, 2020 bonds, 2021 bonds, September 2024 bonds, 2031 bonds, 2032 bonds and 2034 bonds; $200,000 for the January 2024 bonds, 2026 bonds and 2037 bonds; $2,000 for the 2030 bonds and $1,000 for October 2024 bonds and 2025 bonds; and in integrals of $1,000 after that for each series.

If the offer cap is reached, preference will be given to offers that are submitted before the time the underwriters of the new bond offering stop taking indications of interest for the new bond offering, the release noted.

On Wednesday the Philippines priced $2 billion of new global bonds.

D.F. King & Co., Inc. (212 269-5550, 877 478-5041, +44 20 7920 9700, +852 3953 7230, rop@dfkingltd.com or sites.dfkingltd.com/rop) is the information agent.

The dealer managers are Citigroup Global Markets Inc. (212 723-6106, +44 20 7986 8972, +852 2501 2552, fax +852 2501 8117 or liabilitymanagement.asia@citi.com), Deutsche Bank Securities Inc. (212 250-2955, +44 207 545 8011, +65 6423 5342, fax +44 113 223 6121 or liability.management@db.com), Hongkong and Shanghai Banking Corp. Ltd. (888-HSBC-4LM, +852 2822 4100, +44 207 992 6237, 212 525-5552, fax +852 3409 1482 or liability.management@hsbcib.com), Standard Chartered Bank (+65 6596 8398, +44 207 885 5739, fax +65 6535 1931 or liability.management@sc.com).

The offer was not conditioned upon any minimum tenders but was conditioned upon pricing of new bonds.

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