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Chile begins one-day tender offer for some 3 7/8% notes and 3¼% notes
By Susanna Moon
Chicago, Dec. 3 – Chile said it began a tender offer for a maximum amount of its $1 billion 3 7/8% global notes due 2020 and $1 billion 3¼% global notes due 2021.
The tender offer began at 8 a.m. ET on Dec. 3 and will end at 4 p.m. ET the same day, with settlement set for Dec. 11.
The tender cap will be determined later, according to a press release.
Pricing will be set using the bid-side price of the reference U.S. Treasury security plus a fixed spread as follows:
• 3 7/8% notes will be priced using 1.5% Treasury notes due Nov. 30, 2019 plus 65 basis points; and
• Pricing for 3¼% notes will be based on 2.25% Treasury notes due Nov. 15, 2024 plus 25 bps.
The hypothetical purchase price for each $1,000 principal amount was set at $1,086.67 for the 3 7/8% notes and $1,044.45 for the 3¼% notes, using the bid-side price of the reference U.S. Treasury security at 2 p.m. ET on Dec. 2.
Holders also will receive accrued interest up to but excluding the settlement date.
Tender orders must be submitted in principal amounts of at least $100,000 and integral multiples of $1,000 after that.
The tender offer is not conditioned upon minimum tenders but is conditioned on the pricing of a dollar notes offering.
D.F. King & Co., Inc. (banks and brokers call collect 212 269-5550; all others 877 478-5046, attn: Krystal Scrudato, email chile@dfking.com) is the information agent.
The dealer managers are Citigroup Global Markets Inc. (collect 212 723-6106 or 800 658-3745), HSBC Securities (USA) Inc. (collect 212 525-5552 or 888 HSBC-4LM) and Santander Investment Securities Inc. (collect 212 940-1442).
Citigroup Global Markets Inc. is the billing and delivering bank.
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