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Chile's Transelec buys back $220 million 7 7/8% notes in tender offer
By Angela McDaniels
Tacoma, Wash., Aug. 19 - Transelec SA received tenders for $351.85 million of its $465 million of 7 7/8% senior notes due April 15, 2011 during an offer to purchase up to $220 million principal amount of the notes, according to a company news release.
Because the offer was oversubscribed, the company accepted notes for purchase on a pro rata basis.
The payment was $1,071.87 per $1,000 principal amount of notes, which included an early tender payment of $30.00 for each note tendered by the early tender date.
Holders also received accrued interest up to but excluding the payment date, which was Aug. 19.
The tender offer began July 15 and expired at 8 a.m. ET on Aug. 14. The early tender date was 5 p.m. ET on July 28.
The payment is equal to the present value on the payment date of $1,000 per $1,000 principal amount of notes plus the present value on the payment date of interest up to but excluding maturity, determined on the basis of the tender offer yield, and minus accrued interest up to but excluding the payment date.
The tender offer yield is 3.371%, which is equal to the sum of the bid-side yield to maturity of the 1 1/8% U.S. Treasury note due June 30, 2011 based on the bid price as of 2 p.m. ET on Aug. 11 plus 220 basis points.
The offer was conditioned on the receipt of tenders for at least $100 million principal amount of notes and the company obtaining enough financing to fund the offer.
Transelec said it raised about $304 million of proceeds through several debt offerings in the local Chilean market.
The dealer manager was HSBC Securities (USA) Inc. (call liability management group at 888 HSBC-4LM or 212 525-5552), and the information agent was D.F. King & Co., Inc. (800 967-7921 or collect at 212 269-5550).
Transelec is an electricity transmission company based in Santiago, Chile.
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