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Sep 8, 2021

Super Bond Holders Offered Incentives

Christopher Coye

Coye went on to explain what the formal offer will be that the government will launch on the Super Bond on Thursday. Included in it is an incentive for bondholders who sign on to the government’s offer.


Christopher Coye, Minister of State, Finance

“What that offer will be is fifty-five cents on the dollar. That fifty-five cents is split into two components: fifty-one point seven cents will be the principal component, the principal haircut; and the three-point three cents that add up to that fifty-five cents is the past-due interest.  Remember government hasn’t paid interest for roughly a year now, so that has added up and is due. What the proposition is, once the offer is launched, is for us to try and reach that seventy-five percent threshold by November nineteenth. Between, let’s say, tomorrow and November nineteenth the bondholders will have the opportunity to sign up to that offer. If they do sign up to that offer, they will get the full fifty-five cents, including the past-due interest. If we reach the seventy-five percent threshold before November nineteenth, and you, a bondholder, didn’t sign up by November nineteenth, you will not get that three point three cents on the dollar.  This is cash that will come from a third party. We don’t have that cash, so from our – in this scenario, we have already negotiated as best as we can with the TNC and Credit Suisse, who is really the underwriter, to get those funds. We are at the same time looking at our ability to service that debt. So, where we are as a government, we’re on the edge with the TNC as to what they are prepared to put out – or what Credit Suisse is prepared to put out. We can’t go any further. This is the best that we can offer to the bondholders. If the bondholders don’t take up this deal, I don’t know – TNC withdraws from the table, I don’t know how we will service the super bond.”

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