Chile to pay $299.84 million in tender for 3 1/8%, 3 5/8% notes

By Susanna Moon

Chicago, June 14 – The Republic of Chile gave the results of its one-day cash tender offer for a maximum purchase amount of two series of its notes that ended at 4 p.m. ET on Tuesday.

The aggregate purchase price plus accrued interest will be $299,843,866, according to an issuer update on Wednesday.

As announced Tuesday, the issuer was tendering for the following notes with pricing set using the bid-side price of a reference security plus a fixed spread for a purchase price per $1,000 principal amount as follows:

• $758,262,000 3 1/8% global notes due 2025 with pricing based on the 2.375% U.S. Treasury note due May 2027 plus 42 basis points for a reference yield of 2.209% and a purchase price of $1,034.63; and

• $750 million 3 5/8% global notes due 2042 with pricing based on the 3% U.S. Treasury note due February 2047 plus 65 bps for a reference yield of 2.869% and a purchase price of $1,017.66.

For the 2025 notes, the amount of preferred tenders was $233,132,000 and non-preferred tenders was $173,853,000, and none of those notes were accepted for purchase.

For the 2042 notes, the amount of preferred tenders was $349,242,000 and non-preferred tenders was $26,821,000. The issuer accepted for purchase $293.19 million of the preferred tenders and none of the non-preferred tenders.

Holders will also receive accrued interest up to but excluding the settlement date of June 20.

J.P. Morgan Securities LLC is the billing and delivering bank.

D.F. King & Co., Inc. (212 269-5550, 866 796-1271, +44 207-9200-9700, chile@dfking.com or dfking.com/chile) is the information agent.

The dealer managers are Citigroup Global Markets Inc. (212 723-6106 or 800 658-3745), Goldman Sachs & Co. LLC (212 902-6595 or 800 828-3182), HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874).

The offer was not conditioned upon any minimum amount of any notes being tendered but was contingent on the pricing of new notes.

The issuer priced $1,243,000,000 of new 3.86% 30-year senior notes and a €700 million tap of its outstanding 1 7/8% notes due 2030 on Tuesday, a syndicate source told Prospect News.

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