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Published on 5/16/2019 in the Prospect News Emerging Markets Daily and Prospect News Liability Management Daily.

Chile accepts tenders for CLP 205.91 billion bonds due 2020, 2021

By Marisa Wong

Morgantown, W.Va., May 16 – Chile said it received preferred tenders for and accepted for purchase CLP 42.8 billion of its CLP 931,295,000,000 outstanding 4½% bonds due Feb. 28, 2021, CLP 109,245,000,000 of its CLP 2,522,020,000,000 outstanding 4½% bonds due March 1, 2021 and CLP 53,864,500,000 of its CLP 434,345,000,000 outstanding 5½% bonds due 2020.

The tender offer for the three series of debt securities began on May 8 and expired at 8 a.m. ET on May 15.

Chile will pay, excluding interest, a total of CLP 43,720,200,000 for the February 2021 bonds, CLP 111,582,843,000 for the March 2021 bonds and CLP 55,345,773,750 for the 2020 bonds, according to a Thursday press release.

The purchase price for each CLP 1 million principal amount is CLP 1,021,500 for the February 2021 bonds, CLP 1,021,400 for the March 2021 bonds and CLP 1,027,500 for the 2020 bonds.

Payment of the purchase price, along with accrued interest, will be made in dollars, as previously noted. The exchange rate will be CLP 692.33 per $1.00, the rate published on May 15.

Settlement expected to occur on May 17.

Tender orders for old bonds were considered preferred if holders of those bonds also submit an indication of interest in a new bond offering.

Holders had submitted non-preferred tenders for CLP 12.99 billion of the February 2021 bonds, CLP 190 million of the March 2021 bonds and CLP 163,083,500,000 of the 2020 bonds. However, none of the non-preferred tenders have been accepted for purchase, according to Thursday’s press release.

The tender offer is not conditioned on any minimum participation of any series but is conditioned on the pricing and closing of a global offering that consists of an offering to the public in Chile and a Rule 144A and Regulation S sale to investors outside of Chile of Chilean peso-denominated 4% bonds due March 1, 2023, 4.7% bonds due Sept. 1, 2030 and 5.1% bonds due July 15, 2050.

The February 2021 and March 2021 series include bonds that are the subject of a local exchange offer for the new bonds, a previous release noted.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers, 866 470-4500 for all others, attn.: corporate actions, contact@gbsc-usa.com) is the tender and information agent.

The dealer managers for the tender offer are Itau BBA USA Securities, Inc. (attn.: debt capital markets, 212 710-6749, 888 770-4828), Santander Investment Securities Inc. (attn.: liability management team) and Scotia Capital (USA) Inc. (attn.: debt capital markets, 212 225-5559, 800 372-3930).


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