BCP Tender Sees Strong Early Response

Banco de Credito Del Peru (BCP) has received commitments from creditors holding $114.4m of outstanding 6.95% 2021s to exchange these bonds for recently issued 6.875% 2026 fixed-to-floating rate notes. There are $120m of outstanding 2021s. Accepting holders get $1,078.38 worth of new bonds per $1,000 of the old ones, including a $30 early acceptance premium. Remaining holders have until October 24 to swap at $1,048.38. Creditors have also agreed to waive a provision in the original notes that keeps BCP from accepting more than $70m worth of bonds in such an offer. The new notes are the same as those offered on September 8, in a $350m sale. The NC10 bonds pay a fixed coupon and switch to a rate of Libor+7.708% per year after year 10. Bank of America Merrill Lynch and Morgan Stanley ran the initial sale and are also managing the exchange offer. The 2021 notes were originally issued in 2006.