PDVSA to Buy Back Bonds

PDVSA plans to launch a tender for 79% of three series of bonds tied to the Cerro Negro crude oil project. The tender for 7.33% of 2009, 7.90% of 2020 and 8.03% of 2028 issues will go ahead before the end of the year. PDVSA did not say how much of each set of bonds it would buy back. The purchase price will be equal to par plus accrued and unpaid interest and an amount equivalent to 33% of the redemption premium in the indenture, says PDVSA. Bondholders entering into the lock-up agreement will sell back all of their bonds, as well as any they may subsequently acquire, it adds.