Cleary counsels DR on dual sovereign bond offerings and tender offer
Cleary Gottlieb has counselled the Dominican Republic on its Rule 144A/Reg S offering of $700,000,000 7.050% Notes due 2031 and $62,282,850,000 13.625% Notes due 2033. The offering was launched and priced on 31 January 2023 and closed on 3 February 2023.
The bond offering was made simultaneously with a cash tender offer for a series of outstanding PDO-denominated global bonds due 2023. A total of 37,221,000,000 DOP (USD 657,374,423) principal amount of such outstanding bonds were tendered and repurchased as part of the offering, which commenced on 24 January 2023, expired on 31 January 2023 and was settled on 3 February 2023.
The Republic used a portion of the net proceeds from the sale of the new bonds to pay the purchase price of the outstanding bonds accepted in the public offering. This transaction marked the 23rd time that the Dominican Republic has tapped the international debt markets.
Citigroup Global Markets and J.P. Morgan Securities acted as initial purchasers for the new money offering and as joint dealer managers for the tender offer.
Cleary’s corporate team on the transaction consisted of partner Juan Giráldez (pictured), associates Ignacio Lagos, Sofia Falzoni and Martin Sasson, and international counsel Samantha Maasberg Lopez. Counsel Matt Brigham and associates Nathaniel Pribil and Samuel Kramer provided tax advice. All lawyers are based in New York, except Juan Giráldez, who is based in São Paulo.
