Chile’s Entel starts capped tender offers for two series of senior notes

Chicago, Aug. 25 – Chile’s Empresa Nacional de Telecommunicaciones SA (Entel) started cash tender offers for up to $800 million of its $1 billion outstanding 4 7/8% senior notes due 2024 (Cusips: 29245VAA3; P37115AE5) and its $800 million outstanding 4¾% senior notes due 2026 (Cusips: 29245VAB1; P37115AF2), according to a press release on Wednesday.

There is no tender subcap on the 2024 notes, but Entel will only accept up to $300 million of the 2026 notes in the offer.

Pricing for the tender offer will use the 0.125% U.S. Treasury due Aug. 31, 2023 plus a fixed spread of 105 basis points for the 2024 notes and the 0.75% U.S. Treasury due Aug. 31, 2026 plus a fixed spread of 125 bps for the 2026 notes.

Interest will also be paid to the applicable settlement date.

There is a minimum tender condition for at least $300 million aggregate principal amount of notes.

There is also a financing condition in respect of issuing senior debt securities on satisfactory terms and conditions.

Pricing will take place at 10 a.m. ET on Sept. 9.

Tenders may be subject to proration.

There will be an early tender premium of $30 per $1,000 note paid to noteholders who tender their notes by the early deadline of 5 p.m. ET on Sept. 8, also the withdrawal deadline.

The tender offers will expire at 11:59 p.m. ET on Sept. 22.

Early settlement is planned for Sept. 14 and final settlement is expected for Sept. 24.

BNP Paribas Securities Corp. (888 210-4358, 212 841-3059), J.P. Morgan Securities LLC (866 846-2874, 212 834-7279) and Scotia Capital (USA) Inc. (833 498-1660, 212 225-5559) are the dealer managers.

D.F. King & Co., Inc. is the tender agent and information agent (212 269-5550, 866 304-5477, entel@dfking.com, www.dfking.com/entel).

The issuer is a Santiago-based telecommunications company.

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