Uruguay Sets Tender Deadline

Following Tuesday’s issue of $500m in 2045 bonds, Uruguay will close its exchange offer to bondholders Friday, it says, with results expected Monday. The sovereign did not elect to exercise the greenshoe option to sell up to $50m in additional 2045s during Asian market hours, according to a source familiar with the matter. The new bonds traded down in the secondary Wednesday to around 99.125-99.375, according to investors, after pricing Tuesday at par. In the tender, Uruguay is offering more of the new 2045s to holders of $5.02bn outstanding in 12 series of dollar bonds due 2013-2036, and is also offering cash to holders of $2.72bn outstanding in 10 of the same series of USD and two additional Euro-denominated bonds. The total issuance of 2045 bonds through Tuesday’s sale and the exchange is not to top $2bn total, and the total cash payment in the cash portion of the exchange is not to exceed $500m. BNP Paribas and Citi are managing the process. Uruguay priced the new 2045 bonds at par Tuesday with a 4.125% coupon, to yield in line with 4.125%-area price talk.