Lebanon launches exchange offer on 8.5pc Eurobond
LONDON, October 23, 2015
The Lebanese Republic is offering to exchange any or all of its $750 million 8.5 per cent January 2016s for new debt maturing in November 2024 and 2028, according to a regulatory filing.
The sovereign is looking to tempt investors into the exchange by offering to swap the outstanding debt at a 101.31 cash price. That is a premium to the 100.935 price of that bond on Friday, according to Tradeweb.
Lebanon said the purpose of the exchange is to "proactively conduct liability management operations, increase the Republic's financial flexibility and extend its debt maturity profile."
The new 2028 transaction will have a $600 million maximum size and will be prioritised in the exchange. If the Republic receives offers in excess of $600 million, investors will receive a pro rata portion of the 2028s and can elect to receive the remainder in 2024 notes.
The Republic has said it also intends to offer additional notes for cash alongside the exchange offer.
Lebanon has hired Citigroup, Fransabank, Societe Generale de Banque au Liban and Standard Chartered to arrange the two Reg S transactions.
The minimum yield on the new notes will be announced on October 27 and the offer will end on October 30.
Lebanon is rated B2 by Moody's, B- by Standard & Poor's and B by Fitch. - Reuters
