Chile to pay $630.6 million to buy back some notes in one-day tender

By Susanna Moon

Chicago, Jan. 13 – The Republic of Chile announced the results of the one-day tender offer for four series of its notes that ran until 4 p.m. ET on Tuesday.

The aggregate purchase price plus accrued interest will be $630,601,235 for the notes accepted for purchase in the offer, with settlement set for Jan. 20, according to an FWP filing with the Securities and Exchange Commission.

Chile was tendering for four note series, and the results are as follows:

• $829,467,000 of outstanding 3 7/8% global notes due 2020, with preferred tenders for $62,335,000, of which $62,185,000 was accepted for purchase, and non-preferred preferred tenders for $42,215,000 of notes, of which $27,438,000 was accepted for purchase;

• $656,027,000 of outstanding 3¼% global notes due 2021, with preferred tenders for $94,823,000, all of which was accepted for purchase, and non-preferred preferred tenders for $6,845,000 of notes, none of which was accepted for purchase;

• $750 million of outstanding 2¼% global notes due 2022, with preferred tenders for $232,265,000, of which $115,881,000 was accepted for purchase, and non-preferred preferred tenders for $850,000 of notes, none of which was accepted for purchase; and

• $1,060,131,000 of outstanding 3 1/8% global notes due 2025, with preferred tenders for $313,470,000, all of which was accepted for purchase, and non-preferred preferred tenders for $10,150,000 of notes, none of which was accepted for purchase.

The purchase price for each $1,000 principal amount was set at $1,075.96 for the 3 7/8% notes, $1,043.46 for the 3¼% notes, $972.46 for the 2¼% notes and $1,008.58 for the 3 1/8% notes.

Pricing was set using a reference U.S. Treasury security plus a fixed spread as follows:

• $829,467,000 of outstanding 3 7/8% global notes due 2020 will price using the 1.75% Treasury note due Dec. 31, 2020 plus 57 basis points;

• $656,027,000 of outstanding 3¼% global notes due 2021 will be based on 1.75% Treasury note due Dec. 31, 2020 plus 88 bps;

• $750 million of outstanding 2¼% global notes due 2022 will be based on 2.125% Treasury note due Nov. 15, 2025 plus 59 bps; and

• $1,060,131,000 of outstanding 3 1/8% global notes due 2025 will be based on 2.125% Treasury note due Nov. 15, 2025 plus 91 bps.

The offer was not conditioned upon any minimum tender amount but was conditioned on the pricing of the new dollar-denominated notes.

Chile said it sold about $1.3 billion of 3 1/8% 10-year notes and €1.2 billion of 1¾% 10-year notes, both on Tuesday.

Proceeds of the dollar-denominated notes will be used to fund the tender offer, and proceeds of the euro notes sale will be for general purposes.

The dealer managers are Citigroup Global Markets Inc. (212 723-6106 or 800 658-3745), HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM), Merrill Lynch, Pierce, Fenner & Smith Inc. (646 855-8998) and Santander Investment Securities Inc. (212 940-1442 or 855 404-3636)

The information agent is D.F. King & Co., Inc. (212 269-5550, 866 796-1271, +44 0 207-920-9700, chile@dfking.com or dfking.com/chile).

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