Uruguay wraps tenders for three bond series, sets purchase amounts

By Susanna Moon

Chicago, Sept. 8 – The Republic of Uruguay announced the results of the tender offer to purchase four series of notes from 8 a.m. ET on Sept. 6 until 12 p.m. ET on Sept. 7 for non-preferred tenders and 2 p.m. ET on Sept. 7 for preferred tenders.

The maximum purchase amounts were set as follows with pricing for each $1,000 or Ps. 1,000 principal amount:

• $13,127,108 principal amount of the $563,703,939 8% global bonds due 2022 with a purchase price of 122.95% or $1,229.50;

• $29,637,874 principal amount of the $1,537,036,053 4½% global bonds due 2024 with a purchase price of 111.20% or $1,112;

• Ps. 1,787,412,682 principal amount of the Ps. 6,564,605,806, or Ps. 15,160,392,039.04 as adjusted, 5% global UI bonds due 2018 with a purchase price of 102.3% or Ps. 1,023; and

• None of the Ps. 12,135,000,000, or Ps. 27,026,844,704.59 as adjusted, 4¼% global UI bonds due 2027 with a purchase price of 109.15% or Ps. 1,091.50.

The breakdown for preferred and non-preferred tenders is as follows:

• For the 8% notes, $65,635,544 of preferred tenders, of which $13,127,108 was accepted; $59,365,285 of non-preferred tenders, of which none was accepted;

• For the 4½% bonds due 2024, $29,637,874 of preferred tenders, all of which was accepted; $357,668,284 of non-preferred tenders, none of which was accepted;

• For the 5% bonds, Ps. 1,787,412,682 of preferred tenders, all of which was accepted; Ps. 392,923,000 of non-preferred tenders, none of which was accepted; and

• For the 4¼% UI bonds due 2027, Ps. 1,614,500,000 of preferred tenders, none of which was accepted; and no non-preferred tenders.

As previously announced, the principal amount will be adjusted by a factor of 2.314155655 for the 2018 UI bonds and 2.231754161 for the 2027 UI bonds. The adjustment factor for the 2018 UI bonds is the ratio of 3.6603, the value of the UI index at settlement, over 1.5817, the value of the UI index at the time of the bond issue. For the 2027 UI bonds, the ratio is 3.6603, or the value of the UI index at settlement over 1.6401, the value of the UI index at issue.

Holders other than those of the 2018 UI bonds will also receive any accrued interest up to but excluding the settlement date. The accrued interest for the 2027 UI bonds will be adjusted by the factor of 2.231754161 and an exchange rate of Ps. 28.730 to $1.00.

HSBC Securities (USA) Inc. is the billing and delivering bank.

Bonds held through DTC must be delivered to the billing and delivering bank for settlement no later than 3 p.m. ET on the settlement date of Sept. 14.

The dealer managers are Deutsche Bank Securities Inc. (212 250-7527 or 855 287-1922), HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM) and Santander Investment Securities Inc. (212 940-1442 or 855 404-3636).

Global Bondholder Services Corp. (212 430-3774, 866 807-2200 or gbsc-usa.com/uruguay/) is the information agent.

The tender is not conditioned upon any minimum participation but is conditioned on the pricing but not closing of a new peso-denominated bonds due March at about 1 p.m. ET on Sept. 7.

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