By Rebecca Melvin
New York, Oct. 26 – Celulosa Arauco y Constitucion SA priced $900 million of senior notes (expected ratings: Baa3/BBB-/BBB) in 10-year and 30-year tranches on Thursday, according to a market source.
The $500 million tranche of 2027 notes priced with a 3 7/8% coupon at 98.468 to yield 4.063%, or Treasuries plus 160 basis points.
The $400 million tranche of 2047 notes priced with a 5½% coupon at 99.708 to yield 5.52%, or Treasuries plus 255 bps.
The company is using proceeds to buy back portions of three series of notes, including its 7¼% notes due 2019, 5% notes due 2021 and 4¾% notes due 2022.
J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners for the new Rule 144A and Regulation S notes.
Arauco is a Santiago, Chile-based wood pulp company.
| Issuer: | Celulosa Arauco y Constitucion SA
|
| Description: | Senior notes
|
| Amount: | $900 million
|
| Bookrunners: | J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Pricing date: | Oct. 26
|
| Distribution: | Rule 144A and Regulation S
|
| Expected ratings: Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
|
|
| Notes due 2027
|
| Amount: | $500 million
|
| Maturity: | 2027
|
| Coupon: | 3 7/8%
|
| Price: | 98.468
|
| Yield: | 4.063%
|
| Spread: | Treasuries plus 160 bps
|
|
|
| Notes due 2047
|
| Amount: | $400 million
|
| Maturity: | 2047
|
| Coupon: | 5½%
|
| Price: | 99.708
|
| Yield: | 5.52%
|
| Spread: | Treasuries plus 255 bps
|
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