By Rebecca Melvin
New York, June 25 – The Republic of Uruguay priced Ps. 68,505,600,000 3 7/8% Uruguayan inflation global bonds due 2040 and a $400 million add-on to its 4 3/8% bonds due 2031, according to filings with the Securities and Exchange Commission.
The 2040 tranche of 3 7/8% UI global bonds priced at par. The nominal principal amount repaid in each installment for the peso-denominated notes will be adjusted to reflect Uruguayan inflation from the issue date and will be converted to and paid in U.S. dollars at an exchange rate of 42.816 Uruguayan pesos per U.S. dollar.
The $400 million add-on to the 4 3/8% bonds priced at 115.895 for a reoffered yield of 2.481%, or a spread over U.S. Treasuries of 180 basis points.
There are $1,466,969,673 principal amount of the bonds outstanding, having initially priced on Oct. 2, 2019 with an add-on tranche priced on Jan. 23.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Itau BBA USA Securities Inc. are joint bookrunning managers of both tranches.
Uruguay intends to use a portion of the proceeds of the sale of the bonds to partially finance the implementation of measures designed to support economic activity and employment and protect vulnerable sectors, including Covid 19-related government response, with the remainder for general purposes, including financial investment and the refinancing, repurchase or retiring of domestic and external debt, such as any validly tendered and accepted existing bonds.
| Issuer: | Republic of Uruguay
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| Description: | Bonds, additional notes
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| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Itau BBA USA Securities
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| Pricing date: | June 24
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| Settlement date: | July 2
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| Distribution: | SEC registered
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|
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| 2040 bonds
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| Amount: | Ps. 68,505,600,000
|
| Maturity: | July 2, 2040
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| Coupon: | 3 7/8%
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| Price: | Par
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| Yield: | 3 7/8%
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|
|
| 2031 bonds
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| Amount: | $400 million
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| Maturity: | Jan. 23, 2031
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| Coupon: | 4 3/8%
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| Price: | 115.895
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| Yield: | 2.481%
|
| Spread: | Treasuries plus 180 bps
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| Total issue size: | $1,866,969,673
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