Panama Announces Pricing Information for its Cash Invitation

PANAMA CITY, Jan. 24, 2012 /PRNewswire/ -- The Republic of Panama ("Panama"), in accordance with the schedule of its previously announced invitation (the "Cash Invitation") to eligible holders of its 7.250% Global Bonds due 2015 (ISIN: US698299AU88; CUSIP: 698299AU8; Common Code: 020635525) (the "2015 Bonds") to submit, in a modified Dutch auction, offers to sell the 2015 Bonds for cash, announced today that:

• (A): the UST Benchmark Rate is 0.380%;
• (B): the Benchmark Spread is 1.352%
• (A)+(B): the yield used to determine the Base Purchase Price is 1.732%; and
• Assuming a settlement date of February 1, 2012, the Base Purchase Price for the 2015 Bonds would be $1,166.98.

The Cash Invitation is scheduled to expire at 5:00 P.M. (New York City time) today, January 24, 2012 (the "Expiration Date"), unless extended or earlier terminated by Panama. 

The terms and conditions of the Cash Invitation are set forth in the cash invitation document, dated January 17, 2012 (the "Cash Invitation Document"). Capitalized terms used but not defined in this notice are defined in the Cash Invitation Document.

Copies of the Cash Invitation Document may be obtained free of charge by eligible participants from the information and tender agent by visiting the Cash Invitation website at www.bondcom.com/panama.

Information and Tender Agent

The information and tender agent for the Cash Invitation is Bondholder Communications Group, LLC.

Bondholder Communications Group, LLC is located at 30 Broad St., 46th Floor, New York, NY 10004 (Attention: Ramona Peters).  Bondholder Communications Group, LLC can be reached at the following numbers:1-888-385-2663 (toll free); +1-212-809-2663 (call collect).

Joint Dealer Managers

Goldman, Sachs & Co. and Citigroup Global Markets Inc. are acting as Joint Dealer Managers for the Cash Invitation.

Goldman, Sachs & Co. can be reached by telephone at the following numbers: +1-800-828-3182 (toll free); +1-212-902-5183 (call collect).

Citigroup Global Markets Inc. can be reached by telephone at the following numbers: +1-800-558-3745 (toll free); +1-212-723-6108 (call collect).

Important Notice

Panama is making the Cash Invitation only in those jurisdictions where it is legal to do so.  The Cash Invitation is void in all jurisdictions where it is prohibited.  If materials relating to the Cash Invitation come into your possession, you are required by Panama to inform yourself of and to observe all of these restrictions.  The materials relating to the Cash Invitation do not constitute, and may not be used in connection with, a solicitation in any place where solicitations are not permitted by law.  If a jurisdiction requires that the Cash Invitation be made by a licensed broker or dealer and either Joint Dealer Manager or any affiliate of a Joint Dealer Manager is a licensed broker or dealer in that jurisdiction, the Cash Invitation shall be deemed to be made by such Joint Dealer Manager or such affiliate on behalf of Panama in that jurisdiction.

Important Notice for Non-U.S. Holders

In the United Kingdom this document and the Cash Invitation are addressed solely to  (a) persons with professional experience in matters relating to investments who fall within Article 19(5) of the U.K. Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"); and (ii) persons falling within Article 49(2)(a) to (d) of the Order (such a person, a  "relevant person").  In the United Kingdom, a person other than a relevant person should not act or rely on this document or the Cash Invitation or any of their contents.  In the United Kingdom, any investment or investment activity to which this document or the Cash Invitation relate is available only to relevant persons and will be engaged in only with such persons.

In any non-U.S. jurisdictions where the Cash Invitation is subject to restrictions under the local laws and regulations, holders of the 2015 Bonds shall be required and deemed to make certain representations and warranties including those related to their status as eligible holders before having access to the offering materials relating to the Cash Invitation and before submitting their offers.

SOURCE The Republic of Panama