Colombia announces pricing, wraps tender for nine series of bonds

By Jennifer Chiou

New York, June 14 - The Republic of Colombia announced the completion of the tender offer for nine series of its bonds at 4 p.m. ET on June 14, after it received tenders that exceeded the maximum purchase amount.

The offer launched on June 13, when Colombia said that the total principal amount of notes purchased in the tender would not exceed $800 million and the total purchase price would not exceed $950 million.

The offer included Colombia's 8 5/8% bonds due 2008, 11¾% global TES bonds due 2010, 9¾% bonds due 2011, floating-rate notes due 2013, 9¾% bonds due 2009, 10½% bonds due 2010, 10% bonds due 2012, 10¾% bonds due 2013 and 8.7% bonds due 2016.

Colombia accepted tenders from holders of all $26.153 million of its 8 5/8% bonds, $100,852,958 of its 9¾% bonds due 2011, $418.604 million of its 9¾% bonds due 2009, $145.439 million of its 10½% bonds, Ps. 178.432 billion, or 50%, of its 11¾% bonds, $68.172 million, or 25%, of its floaters and none of its 10% bonds, 10¾% bonds and 8.7% bonds.

The 11¾% bonds and floaters will be accepted on a pro rata basis.

The original principal amount of 9¾% bonds due 2011 was $195.547 million.

In total, there was about $4.7 billion principal amount of the bonds outstanding.

For each $1,000 principal amount of notes, the company will pay $1,026 for the 8 5/8% bonds, $1,082.50 for the 9¾% bonds due 2011 and $1,125 for the floating-rate notes. For each 1,000 Colombian pesos of the 11¾% bonds, the payout will be Ps. 1,068.75.

For each $1,000 principal amount of 9¾% bonds due 2009, the payout is $1,075.29, based on the 4 7/8% U.S. Treasury due 2009 plus 25 basis points, and, for the 10½% bonds, it is $1,139.32, based on the 4½% Treasury due 2010 plus 32 bps.

For the 10% bonds, pricing would have been based on the 4¾% Treasury due 2012 plus 60 bps; for the 10¾% bonds, it would have been based on the 4¾% Treasury plus 65 bps; and for the 8.7% bonds, it would have been based on the 4½% Treasury due May 2017 plus 90 bps.

The company will also pay accrued interest for the notes.

The settlement date is slated for June 28.

As previously reported, the offer would have ended early if the maximum purchase amount of bonds was received before the scheduled expiration.

Settlement of the offer depends on closing of Colombia's planned issue of global TES bonds due 2027. Settlement does note depend on receipt of any minimum amount of tenders.

Holders may not withdraw tenders once they are submitted.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6108) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) were dealer managers. Global Bondholder Services Corp. (866 804-2200 or 212 430-3774) was the information agent. Dexia Banque Internationale a Luxembourg, SA (352-45901) was the Luxembourg tender agent.

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