COFIDE Launches Cash Tender Offer for Outstanding 4.750% Notes Due 2025

COFIDE Cash Tender Offer Initiated

On April 25, 2025, Corporación Financiera de Desarrollo S.A. (commonly known as COFIDE) took an important step by announcing a cash tender offer specifically aimed at its outstanding 4.750% notes that are due in 2025. The announcement highlights COFIDE's proactive approach in managing its debt obligations and capital structure.

Details of the Offer

The cash tender offer, referred to as the "Tender Offer," is geared toward acquiring any and all of the existing 4.750% notes that are outstanding under the 2025 maturity date. According to COFIDE's Offer to Purchase—released concurrently with the announcement—the tender offer aims to simplify the company's financial framework while potentially enhancing its liquidity. The outstanding principal amount for these notes stands at approximately $349.3 million, with a tender offer consideration set at $1,000 per each $1,000 in principal.

Timeline and Process

The Tender Offer is scheduled to conclude at 5:00 p.m. New York City time on May 1, 2025. Participants looking to take advantage of the offer must validly tender their notes by this deadline. Notably, if the tendered notes are accepted, COFIDE anticipates completing the payments by the expected settlement date, which is likely to occur three business days following the expiration of the offer.

An important feature of the offer includes the ability for noteholders to withdraw their tendered notes any time before the termination of the offer. This can be done following the guidelines outlined in COFIDE's Offer Documents, with certain provisions in place for the withdrawal process if the tender offer does not complete as projected.

Conditions of the Offer

For the tender offer to be successful, COFIDE has outlined certain conditions. The successful pricing and terms of a concurrent issuance of new senior notes by COFIDE will play a critical role in the offer's execution. These new notes are intended to fund the purchases made through the tender offer. Alongside this, the new offering will not be subject to U.S. Securities Act registration requirements and exclusively targets qualified institutional buyers both in the U.S. and non-U.S. individuals outside the United States.

However, there's no assurance regarding the successful completion of the new notes offering or its pricing, which means stakeholders must keep an eye on these developments closely. The existing notes will not see obligatory redemption actions from COFIDE unless the terms permit it under the established indenture conditions.

Corporate Strategy and Forward-Looking Statements

In making this financial move, COFIDE is not just looking to optimize its current standing but also to position itself more strategically in the financial markets for the future. The announcement is accompanied by forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, which stress COFIDE's commitment to improving upon its business strategy and overall market position despite uncertainties that could arise.

The company emphasizes that its stakeholders should make informed decisions based on individual assessments of the tender offer against broader market conditions.

Contact Information and Resources

For further inquiries related to the tender offer, COFIDE has appointed Global Bondholder Services Corporation as the Tender and Information Agent. They can be contacted via phone for banks and brokers as well as general inquiries, ensuring transparency and accessibility to existing bondholders seeking information or clarification.

The Offer Documents including the complete terms and additional details can be found online, set to remain accessible until the offer is either consummated or terminated. Potential participants or interested parties are strongly encouraged to review these documents thoroughly to understand the complexities involved in this financial initiative.

In conclusion, COFIDE's announcement represents a significant movement within its operational strategy, signaling a focus not only on existing liabilities but also on creating favorable conditions for future growth and stability in the ever-evolving financial landscape.