Uruguay in $574.4 Million and Ps. 51.3 Billion New Money Offering and Tender Offer

May 21, 2021

Cleary Gottlieb represented the Republic of Uruguay (Uruguay) in the offering of $574.4 million 4.375% notes due 2031 and of Ps. 51.3 billion 8.25% notes due 2031.

The issuance of the 2031 USD notes constituted a further issue of Uruguay’s $1.87 billion outstanding 4.375% notes due 2031, initially issued on January 23, 2019, October 2, 2019, and July 2, 2020. Both offerings priced on May 13, 2021, and closed on May 21, 2021.

The offerings of the notes were made concurrent with an offer by the dealer managers to purchase for cash certain series of outstanding peso-denominated and U.S. dollar-denominated notes of Uruguay, which launched on May 13, 2021, and expired on May 20, 2021.

BofA Securities Inc., HSBC Securities (USA) Inc., and Santander Securities Inc. acted as underwriters for the notes offering and joint dealer managers for the tender offer.

Uruguay used a portion of the net proceeds of the sale of the notes to pay the purchase price of outstanding notes accepted by the dealer managers in the tender offer and resold to Uruguay. The remaining proceeds will be applied to partially finance the implementation of measures designed to support economic activity, employment, and protect vulnerable sectors, including COVID-19–related government response through Uruguay’s broad social safety net and to general purposes of the government, including financial investment and the refinancing, repurchase, or retiring of domestic and external indebtedness.