BOGOTÁ - Ecopetrol S.A. (NYSE: EC), the Colombian state-owned oil company, successfully completed its cash tender offer for the outstanding 4.125% Notes due 2025. The tender offer, which expired on Monday, concluded with the company accepting for purchase all securities that were validly tendered and not validly withdrawn.
The aggregate principal amount tendered was $737,350,000 out of the $1,200,000,000 in outstanding notes, with a total consideration of $994.70 per $1,000 principal amount of securities, excluding accrued and unpaid interest. The total consideration, as well as the accrued interest, was paid to the holders of the accepted notes today.
In line with the terms of the offer, Ecopetrol also announced its intention to deposit government obligations and cash into a trust fund. This fund will be specifically pledged as security for the benefit of the holders of the securities not tendered. Upon completion of this deposit, Ecopetrol's obligations under the securities not tendered and the indenture, except for those expressly provided to survive, will be satisfied and discharged.
BBVA (BME:BBVA) Securities Inc., BofA Securities, Inc., and Citigroup Global Markets, Inc. served as Dealer Managers for the tender offer. Global Bondholder Services Corporation acted as the tender and information agent.
Ecopetrol emphasized that the tender offer was made solely pursuant to the Offer to Purchase and the related Notice of Guaranteed Delivery, and was not a recommendation for holders to tender or refrain from tendering their securities.
This move is part of Ecopetrol's broader financial strategy. The company is a major player in the energy sector in the Americas, with significant operations in hydrocarbon production, transportation, logistics, and refining. It also has a presence in energy transmission and road concessions through its majority stake in ISA.
The information provided here is based on the press release statement from Ecopetrol S.A.
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