In a statement, Lebanon said the difference between the exchange price of the original notes would be paid to investors in cash on the settlement date, expected to be May 2, along with accrued and unpaid interest.

Lebanon last week mandated Bank Audi and Credit Suisse as joint advisers. Lebanon raised $875 million to refinance maturing debt through a five-year Eurobond last month and has three further Eurobonds maturing this year -- a $250 million issue due in May, a $250 million due in June and a $750 million deal due in August. -Reuters