#Peru #Lima #Tender Offer #Kallpa Generación

Kallpa Generación S.A. Completes Cash Tender Offer

Kallpa Generación S.A., a sociedad anónima governed by Peruvian law, has recently confirmed the conclusion of its cash tender offer for all outstanding 4.875% Senior Notes, due 2026. The offer's expiration was declared at 5:00 p.m. New York City time on January 27, 2025, marking a significant milestone for the company.

The offer was executed according to conditions outlined in the offer to purchase issued on January 21, 2025, alongside a Notice of Guaranteed Delivery. This strategic move signifies the company’s commitment to optimizing its capital structure and enhancing shareholder value.

Key Results

As reported by the Tender Agent, a substantial total of U.S.$273,638,000 in principal amount—around 78% of the outstanding Notes—was successfully tendered by the expiration date. Kallpa Generación accepted all valid securities, providing compensation directly to participating bondholders. Each holder who tendered their notes will receive a Tender Offer Consideration of U.S.$1,001.50 per U.S.$1,000.00 of Notes.

In addition to this amount, bondholders will also benefit from accrued and unpaid interest from the last payment date up to the expected settlement date, which is anticipated around January 30, 2025.

Management and Support

Kallpa Generación enlisted Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, and Santander US Capital Markets LLC as Dealer Managers for this initiative. Furthermore, D.F. King & Co., Inc. acted as both the Information Agent and Tender Agent for the offer, facilitating smooth communication between the company and bondholders. For those who wished to access additional versions of the purchase offer or related documents, contact information was provided by the Information Agent.

Regulatory Notice

It's crucial to note that none of the offer documents were filed with federal or state securities commissions or regulatory authorities across any nations, including Peru. Consequently, potential investors were advised that no governmental authority had validated the content’s accuracy. Participants were strictly bound by the terms presented in the offer documentation, emphasizing the formality and compliance required for such transactions.

Strategic Implications

This tender offer reflects Kallpa Generación's robust financial strategy, allowing the firm to enhance its balance sheet by minimizing debt obligations efficiently. Such moves are typically perceived favorably in the investment community and may invigorate the company's ongoing operations amid fluctuating market conditions.

Forward-Looking Statements

Kallpa Generación also shared forward-looking statements concerning the offer and anticipated future performance. These estimates hinge on current expectations, yet are subject to numerous uncertainties. Investors were cautioned that actual results might diverge significantly from projections due to shifting market dynamics and internal factors.

As Kallpa Generación advances towards its strategic goals, the execution of this tender offer demonstrates a proactive approach to fiscal management and future growth prospects. The company's focus remains on its core operations while navigating the complex landscape of financial markets effectively.