After having placed US$166 million at the end of 2023, CVU will put the securities already issued back on the market.
Uruguayan Road Corporation (CVU) will carry out a new issue for an amount of up to 310 million dollars, after the titles launched in December, thus becoming the company that will carry out the first corporate reopening in the Uruguayan stock market.
The tender, which seeks to provide dynamism to the financial investment, It will take place next week and will have three series: one for 658 million Indexed Units (UI), that is, about 100 million dollars, with an annual interest of 3.80%; another for 2,660 million Pension Units (UP), about 110 million dollars, with annual interest of 2.25%; and another for 100 million dollars, with an annual interest of 5.70%.
The company’s objective is to exchange debt securities issued in previous years for new papers, within the framework of the CVU III Financial Trust. The firm highlighted that the objective is to “contribute to the revitalization and promotion of financial investment in the local market, increasing its circulation and collaborating to generate greater liquidity and depth in the instrument.”
When does the tender open and what are its details?
In it wholesale section, Dedicated to institutional investors, the bidding will be open between Tuesday the 16th and Thursday the 18th, between 10 a.m. and 12 noon on both days, depending on the series in question.
In it retail, Offers may be made, based on the price obtained in the wholesale segment, between Wednesday the 17th and Friday the 19th, between 10 a.m. and 1 p.m.
The instrument has a AA.uy rating from Moody’s Local AR and offers semiannual interest payments starting in June of this year, with a 12-year principal grace period (until December 2035) and constant amortization from that date until June 2049.
To make an offer, the requirement is that the investor owns securities previously issued by CVU, which are within the eligible titles for the exchange. Thus, they will be able to deliver these titles and additionally offer up to a maximum of 10% cash and obtain in exchange a new CVU title with a longer term and new interest coupons.
CVU reported that retailers will be able to enter offers through stockbrokers or the respective financial institutions.
Source: Ambito
