Chile’s Codelco gets tenders for $745 million of notes; pricing set

By Susanna Moon

Chicago, Feb. 4 – Corporacion Nacional del Cobre de Chile, or Codelco, announced the results of the tender offer for any and all of three series of notes that ended at 5 p.m. ET on Feb. 1.

As announced Jan. 28, the issuer is also tendering for up to a maximum amount of two other series, with the capped offer to remain open until 11:59 p.m. ET on Feb. 25.

The maximum purchase amount in the capped offer will be equal to $1,907,497,000 less the principal amount of the notes purchased in the any-and-all tender.

In the any-and-all offer, the company accepted tenders for the following amount of notes with pricing for each $1,000 principal amount set at 2 p.m. ET on Feb. 1 using a reference security and a fixed spread, according to an announcement by the company:

• $183,051,000 of the $585,237,000 3¾% notes due 2020 with pricing set at $1,017.25 using the 2½% U.S. Treasury note due Dec. 31, 2020 plus 20 basis points for a reference yield of 2.529%;

• $247,814,000 of the $484,774,000 3 7/8% notes due 2021 with pricing set at $1,021 based on the 2½% U.S. Treasury note due Dec. 31, 2020 plus 54 bps for a reference yield of 2.529%; and

• $314,219,000 of the $837,486,000 3% notes due 2022 with pricing set at $990.13 based on the 2½% U.S. Treasury note due Jan. 15, 2022 plus 80 bps for a reference yield of 2.505%.

Settlement will occur on Feb. 6.

Capped offer

Codelco is also tendering for a maximum amount of the following series, with the notes listed in order of priority acceptance levels and total purchase price for each $1,000 principal amount to be set at 2 p.m. ET on Feb. 8 using a reference security and a fixed spread:

• $1,621,355,000 of 4½% notes due 2025 with pricing based on the 2 5/8% U.S. Treasury note due Dec. 31, 2023 plus 129 bps for a hypothetical total purchase price of $1,035.68; and

• $587,498,000 of 4½% notes due 2023 with pricing based on the 2 5/8% U.S. Treasury note due Dec. 31, 2023 plus 80 bps for a hypothetical total purchase price of $1,045.95.

The total purchase price will include an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on Feb. 8.

The hypothetical pricing was set using the yield of the reference U.S. Treasury security as of 2 p.m. ET on Jan. 25.

Holders will also receive accrued interest up to but excluding the settlement date.

Tendered notes may be withdrawn at any time before the early deadline.

Settlement could occur as early as Feb. 12 for early tendered notes and Feb. 27 for final settlement.

The tenders are contingent on the company receiving enough proceeds from a proposed issue of securities to fund the offers, the previous release noted.

As reported, Codelco priced $1.3 billion of 4 3/8% senior notes at 93.054 on Jan. 28 to yield 4.815%, or Treasuries plus 175 bps.

Citigroup Global Markets Inc. (212 723-6106 or 800 558 3745), HSBC Securities (USA) Inc. (212 525-5552 or 888 472-2456), J.P. Morgan Securities LLC (212 834-8209;7279 or 866 846-8209;2874) and Scotia Capital (USA) Inc. (212 225-5559 or 800 372-3930) are the dealer managers. Global Bondholder Services Corp. (866 470-4200, 212 430-3774 or gbsc-usa.com/Codelco/) is the tender agent and information agent.

Codelco is a Santiago, Chile-based copper mining company.

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