#Colombia #investment strategy #Medellín #SURA Asset Management #Debt Tender Offer

SURA Asset Management Initiates Major Debt Tender Offer

On March 31, 2025, SURA Asset Management S.A. announced the commencement of a significant tender offer aimed at repurchasing its own debt. The company is looking to acquire up to $175 million in aggregate principal amount of its 4.375% Senior Guaranteed Notes set to mature in 2027. This strategic move aligns with SURA's ongoing commitment to efficient capital management and creating value for its investors.

Overview of the Tender Offer

The tender offer allows bondholders to sell their notes back to SURA at a specified cash price. According to the official announcement, the company plans to repurchase these notes for an attractive total consideration of $1,000.00 for each $1,000 principal amount of notes tendered. The early tendering incentive is set at $30.00, available for notes submitted before the early tender deadline, which is set for 5 PM NYT on April 11, 2025.

A timeline of key dates has been established as follows:

• - Commencement of the Tender Offer: March 31, 2025
• - Early Tender Deadline: 5 PM NYT on April 11, 2025
• - Expiration Time: 5 PM NYT on April 28, 2025

These dates outline critical opportunities for investors looking to participate in the offer and maximize their returns. It's important to note that for those who do decide to tender their notes after the early deadline, the total consideration will not include the early tender payment.

Conditions and Priority

While this tender offer is open to any willing participant, it is subject to a maximum acceptance amount which remains capped at $175 million. Should the total notes tendered prior to the early tender deadline exceed this amount, a prorated acceptance will occur. Therefore, it’s advised for investors to act quickly to enhance their chances of full acceptance.

SURA Asset Management plans to preferentially allocate the new notes in a concurrent offering to those investors who have actively participated in the tender offer.

Context and Financial Strategy

This move is part of a broader financial strategy deployed by SURA Asset Management, a leading firm primarily focused on retirement savings and various investment solutions across Latin America. Through this repurchase, SURA aims to optimize its capital structure by managing interest expense and taking advantage of favorable conditions in the debt market.

With a reputable track record in asset management, SURA is known for providing comprehensive investment solutions to individuals, corporations, and institutions. It focuses on maintaining a diversified portfolio, ensuring clients can meet their retirement and investment goals efficiently.

Conclusion

The initiation of the debt tender offer by SURA Asset Management reflects a proactive approach to debt management, aligning with the firm’s ethos of maximizing shareholder value. The upcoming deadlines give tendering note holders a crucial window to respond, support SURA’s financial strategies, and benefit from the company’s solid market position and growth trajectory. This move not only strengthens the company's balance sheet but enhances its capability to cater to investor needs effectively while maintaining a robust outlook for future investment opportunities.