Ecopetrol S.A. Commences Cash Tender Offer for Any and All of its Outstanding 5.375% Notes due 2026
Ecopetrol S.A. (NYSE: EC) has announced a cash tender offer to purchase any and all of its outstanding 5.375% Notes due 2026. The offer expires on October 15, 2024, at 5:00 p.m., New York City time, unless extended or terminated earlier. The Total Consideration for each $1,000 principal amount of Securities will be calculated based on a Fixed Spread over the Reference Yield of the U.S. Treasury Security.
The offer is part of a concurrent offering of new notes by Ecopetrol. The settlement date is expected to be October 18, 2024. Following the offer, Ecopetrol intends to redeem any remaining outstanding Securities. The offer is subject to certain conditions, including a Financing Condition related to the new notes offering.
BBVA Securities Inc., J.P. Morgan Securities , and Santander US Capital Markets are serving as Dealer Managers for the offer.
Ecopetrol S.A. (NYSE: EC) ha annunciato un'offerta di acquisto in contante per riscattare tutti i suoi Titoli 5.375% in scadenza nel 2026. L'offerta scade il 15 ottobre 2024 alle 17:00, ora di New York, salvo proroghe o cancellazioni anticipate. La Considerazione Totale per ciascun importo principale di 1.000 $ di Titoli sarà calcolata sulla base di uno Spread Fisso rispetto al Rendimento di Riferimento dei Titoli del Tesoro USA.
L'offerta fa parte di un'emissione simultanea di nuovi titoli da parte di Ecopetrol. La data di regolamento è prevista per il 18 ottobre 2024. Dopo l'offerta, Ecopetrol intende riscattare i Titoli ancora in circolazione. L'offerta è soggetta a determinate condizioni, inclusa una Condizione di Finanziamento relativa all'emissione dei nuovi titoli.
BBVA Securities Inc., J.P. Morgan Securities e Santander US Capital Markets stanno fungendo da Gestori per l'offerta.
Ecopetrol S.A. (NYSE: EC) ha anunciado una oferta de compra en efectivo para adquirir todos sus Bonos al 5.375% con vencimiento en 2026. La oferta expira el 15 de octubre de 2024 a las 5:00 p.m., hora de la ciudad de Nueva York, a menos que se extienda o se termine antes. La Consideración Total para cada monto principal de 1,000 $ de los Valores se calculará en función de un Diferencial Fijo sobre el Rendimiento de Referencia del Título del Tesoro de EE.UU.
La oferta es parte de una emisión concurrente de nuevos bonos por parte de Ecopetrol. Se espera que la fecha de liquidación sea el 18 de octubre de 2024. Tras la oferta, Ecopetrol tiene la intención de canjear cualquier Valor pendiente restante. La oferta está sujeta a ciertas condiciones, incluida una Condición de Financiamiento relacionada con la emisión de nuevos bonos.
BBVA Securities Inc., J.P. Morgan Securities y Santander US Capital Markets están actuando como Gestores de la oferta.
Ecopetrol S.A. (NYSE: EC)는 2026년 만기인 5.375% 채권을 전량 현금으로 매입하는 공모를 발표했습니다. 이 제안은 2024년 10월 15일 오후 5시, 뉴욕 시간에 종료되며, 연장되거나 조기 종료되지 않는 한 유효합니다. 각 1,000달러의 채권 원금에 대한 총 고려액은 미국 국채의 기준 수익률에 대한 고정 스프레드를 기준으로 계산됩니다.
이 제안은 Ecopetrol의 새로운 채권 발행과 함께 이루어집니다. 결제일은 2024년 10월 18일로 예상됩니다. 제안 이후 Ecopetrol은 남아 있는 모든 채권을 상환할 계획입니다. 이 제안은 새로운 채권 발행과 관련된 자금 조달 조건을 포함한 특정 조건에 따라 달라집니다.
BBVA Securities Inc., J.P. Morgan Securities 및 Santander US Capital Markets는 이 제안을 위한 딜러 매니저로 활동하고 있습니다.
Ecopetrol S.A. (NYSE: EC) a annoncé une offre d'achat en espèces pour acquérir tous ses Obligations à 5,375 % arrivant à échéance en 2026. L'offre expire le 15 octobre 2024 à 17h00, heure de New York, sauf prolongation ou annulation anticipée. La Considération Totale pour chaque montant principal de 1 000 $ de Titres sera calculée sur la base d'un Écart Fixe par rapport au Rendement de Référence des Obligations du Trésor américain.
L'offre fait partie d'une émission concomitante de nouveaux titres par Ecopetrol. La date de règlement est prévue pour le 18 octobre 2024. Suite à l'offre, Ecopetrol prévoit de racheter tous les Titres restants en circulation. L'offre est soumise à certaines conditions, y compris une Condition de Financement liée à l'émission de nouveaux titres.
BBVA Securities Inc., J.P. Morgan Securities et Santander US Capital Markets agissent en tant que Gestionnaires pour l'offre.
Ecopetrol S.A. (NYSE: EC) hat ein Barangebot für den Kauf aller bestehenden 5,375% Anleihen mit Fälligkeit im Jahr 2026 angekündigt. Das Angebot läuft am 15. Oktober 2024 um 17:00 Uhr New Yorker Zeit aus, sofern es nicht verlängert oder vorzeitig beendet wird. Die Gesamtkapitalerhöhung für jeden Betrag von 1.000 $ an Wertpapieren wird basierend auf einem fixen Spread über dem Referenzrendite der US-Staatsanleihen berechnet.
Das Angebot ist Teil einer gleichzeitigen Emission neuer Anleihen durch Ecopetrol. Der Abrechnungstermin wird voraussichtlich der 18. Oktober 2024 sein. Nach dem Angebot beabsichtigt Ecopetrol, alle verbleibenden ausstehenden Wertpapiere einzulösen. Das Angebot unterliegt bestimmten Bedingungen, einschließlich einer Finanzierungsbedingung, die mit der Emission neuer Anleihen verbunden ist.
BBVA Securities Inc., J.P. Morgan Securities und Santander US Capital Markets fungieren als Dealer-Manager für das Angebot.
- Potential reduction of outstanding debt through the tender offer
- Concurrent offering of new notes to refinance existing debt
- Flexibility for noteholders to tender their securities or hold until maturity
- Potential increase in overall debt if new notes offering exceeds tender offer amount
- Possible higher interest rates on new notes compared to existing 5.375% Notes
Insights
Ecopetrol's cash tender offer for its 5.375% Notes due 2026 is a significant financial move that could impact the company's debt structure and liquidity position. The offer to purchase
Key points to consider:
- The tender offer is coupled with a new notes offering, suggesting a debt restructuring strategy to optimize the company's capital structure.
- The premium of 45 basis points over the reference U.S. Treasury security implies a cost to the company but may lead to long-term savings if new debt is issued at lower rates.
- The "Financing Condition" ties the success of this tender offer to the concurrent new notes offering, highlighting the interconnected nature of these financial maneuvers.
This move could potentially lower Ecopetrol's interest expenses and extend its debt maturity profile, which may be viewed positively by investors. However, the overall impact will depend on the terms of the new notes and the participation rate in the tender offer.
The timing of Ecopetrol's tender offer is noteworthy, coming amidst a volatile global energy market. Several factors make this a complex decision for bondholders:
- Current market conditions, including high inflation and rising interest rates, may influence the attractiveness of the offer.
- The energy sector's outlook, particularly for oil companies, could sway investors' decisions to hold or tender their notes.
- The
5.375% coupon on the existing notes may be competitive in the current environment, potentially reducing the incentive for holders to tender.
Investors should closely monitor the participation rate in this offer, as it will indicate market sentiment towards Ecopetrol's debt and could influence future financing opportunities. The company's intent to potentially redeem remaining notes post-offer adds another layer of consideration for bondholders in their decision-making process.
Overall, this tender offer reflects Ecopetrol's proactive approach to liability management, which could be viewed positively by the market if executed successfully.
BOGOTÁ,
The following table sets forth certain terms of the Offer:
Title of Securities(1) | CUSIP/ISIN | Outstanding | Reference Treasury | Bloomberg | Fixed | |||||
|
279158 AL3 / |
| UST |
FIT4 |
+45 bps |
(1) The Securities are redeemable at par at any time on or after March 26, 2026.
The "Total Consideration" offered for each
The Offer is being made pursuant to the Offer to Purchase, which contains a comprehensive description of the terms of the Offer. The Offer is scheduled to expire at 5:00 p.m.,
Following payment for the Securities accepted pursuant to the terms of the Offer, Ecopetrol currently intends (but is not obligated) to redeem all or a portion of the Securities that remain outstanding in accordance with the terms of the Indenture governing the Securities. The Offer does not constitute a notice of redemption or an obligation to issue a notice of redemption.
Tenders of Securities pursuant to the Offer may be validly withdrawn at or prior to the Expiration Time. If the Offer is extended, tendered Securities may be withdrawn at any time before the 10th business day after commencement of the Offer. Securities subject to the Offer may also be validly withdrawn at any time after the 60th business day after commencement of the Offer if for any reason the Offer has not been consummated within 60 business days after commencement.
The Offer is conditioned upon the satisfaction or waiver by Ecopetrol of certain conditions described in the Offer to Purchase, including the Financing Condition (as defined below), but is not conditioned upon any minimum principal amount of Securities being tendered. Subject to applicable law, Ecopetrol may, at its sole discretion, waive any condition applicable to the Offer and may extend the Offer. Under certain conditions and as more fully described in the Offer to Purchase, Ecopetrol may terminate the Offer before the Expiration Time.
The Offer is being made in connection with a concurrent offering of notes (the "New Notes") by the Company (the "Notes Offering"). The "Financing Condition" means that the Company shall have priced and closed the Notes Offering on terms satisfactory to the Company and resulting in net cash proceeds sufficient to fund the Total Consideration with respect to the Securities validly tendered at or prior to the Expiration Time (regardless of actual amount of Securities tendered), plus accrued and unpaid interest on such Securities from the last interest payment date to, but excluding, the Settlement Date. The Offer is not an offer to sell or a solicitation of an offer to buy the New Notes.
The complete terms and conditions of the Offer are set forth in the Offer to Purchase and in the related Notice of Guaranteed Delivery, which holders are urged to read carefully before making any decision with respect to the Offer.
The Offer is open to all registered holders of Securities. A beneficial owner of Securities that are held of record by a broker, dealer, commercial bank, trust company, or other nominee (each, a "Custodian") must instruct such Custodian to tender such Securities on the beneficial owner's behalf in a timely manner. Beneficial owners should be aware that a Custodian may establish its own earlier deadline for participation in an Offer.
Global Bondholder Services Corporation is serving as the tender agent and information agent. Requests for documents may be directed to Global Bondholder Services Corporation by telephone at +1 212-430 3774 (banks and brokers) or Toll-Free at +1 855-654-2014.
Copies of the Offer to Purchase and related Notice of Guaranteed Delivery are available at the following web address: at https://gbsc-usa.com/ecopetrol/.
BBVA Securities Inc., J.P. Morgan Securities LLC and Santander US Capital Markets LLC are serving as Dealer Managers (the "Dealer Managers") for the Offer. Questions regarding the Offer may also be directed to the Dealer Managers as set forth below:
BBVA Securities Inc. | J.P. Morgan Securities LLC | Santander US Capital Markets LLC |
1345 Avenue of the | 383 Madison Avenue | 437 Madison Avenue |
44th Floor | ||
Attention: Latin America Debt Capital Markets | Attn: Liability Management Group | |
Attn: Liability Management | Collect: (212) 834-7279 | Collect: (212) 940-1442 |
Collect: +1 (212) 728 2446 | ||
Email: AmericasLM@santander.us | ||
Email: liabilitymanagement@bbva.com |
This press release is for informational purposes only and does not constitute an offer to purchase nor the solicitation of an offer to sell any Securities. The Offer is being made only pursuant to the Offer to Purchase and related Notice of Guaranteed Delivery.
No Recommendation
None of Ecopetrol, BBVA Securities Inc., J.P. Morgan Securities LLC, Santander US Capital Markets LLC, Global Bondholder Services Corporation, or the trustee or security registrar with respect to the Securities, nor any affiliate of any of the foregoing, has made any recommendation as to whether holders should tender or refrain from tendering all or any portion of their Securities in response to the Offer or expressing any opinion as to whether the terms of the Offer are fair to any holder. Holders must make their own decision as to whether to tender any of their Securities and, if so, the purchase price of Securities to tender. Please refer to the Offer to Purchase for a descrie: (866) 846-2874ption of the offer terms, conditions, disclaimers and other information applicable to the Offer.
About Ecopetrol
Ecopetrol is a mixed-economy company, the largest company in
Disclaimer and Other Important Notices
The Company expressly reserves the absolute right, in its sole discretion, from time to time to purchase any Securities that remain outstanding after the Expiration Date through open-market or privately negotiated transactions, one or more additional tender or exchange offers or otherwise, on terms and at prices that may or may not be equal to the consideration offered in the Offer, or to exercise any of its rights, including redemption rights, under the Indenture governing the Securities.
This press release and the Offer to Purchase do not constitute an offer to purchase or the solicitation of an offer to sell Securities in any jurisdiction in which such offer or solicitation would be unlawful. In those jurisdictions where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Ecopetrol by the Dealer Managers or one or more registered brokers or dealers licensed under the laws of such jurisdiction. If materials relating to the Offer come into a holder's possession, the holder is required by Ecopetrol to inform itself of and to observe all of these restrictions.
The Offer to Purchase has not been filed with or reviewed by the SEC, any state securities commission or any other regulatory authority, nor has any such commission or other regulatory authority passed upon the accuracy or adequacy of the Offer to Purchase or any of the accompanying ancillary documents delivered thereunder. Any representation to the contrary is unlawful and may be a criminal offense.
The Offer to Purchase will not be authorized by the Colombian Superintendency of Finance (Superintendencia Financiera de
This press release may contain forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, including those related to the Offer. Forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ from those expressed in any forward-looking statements. Ecopetrol is not under any obligation to (and expressly disclaims any such obligation to) update forward- looking statements as a result of new information, future events or otherwise, except as required by law.
Investor Relations
Lina María Contreras Mora
Acting Head of Capital Markets
Carrera 13 No. 36-24, Bogotá,
e-mail: investors@ecopetrol.com
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SOURCE Ecopetrol S.A.
FAQ
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