NEW YORK, Oct 19 (IFR) - Uruguay launched its new 2027 maturing US dollar-denominated bonds at a spread of Treasuries plus 245bp, according to one of the lead managers.
The launch spread is at the tight end of guidance of 250bp area and inside initial price thoughts of 265bp area.
The amortizing bond has an average life of around 11 years and is part of a broader liability management operation.
The deal is being done in conjunction with a one-day cash tender for outstanding 9.25% 2017s, 8% 2022s, 4.5% 2024s and 6.875% 2025s, for which Uruguay is offering a purchase price of 114, 127.50, 106.00 and 119, respectively.
The new money component of the trade is around US$1.2bn, the lead manager said. Citigroup, HSBC and Itau BBA are the lead managers on the transaction.
Reporting by Davide Scigliuzzo; editing by Shankar Ramakrishnan