Chile’s Entel prices tender offers for senior notes due 2024, 2026

By Marisa Wong

Los Angeles, Sept. 10 – Empresa Nacional de Telecommunicaciones SA (Entel) announced pricing under its Aug. 25 cash tender offers for up to $800 million aggregate principal amount of its $1 billion outstanding 4 7/8% senior notes due 2024 (Cusip: 29245VAA3, P37115AE5) and its $800 million outstanding 4¾% senior notes due 2026 (Cusip: 29245VAB1, P37115AF2).

The total consideration per $1,000 principal amount is $1,072.30 for the 2024 notes and $1,108.58 for the 2025 notes.

Pricing, determined at 10 a.m. ET on Sept. 9, was based on 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.

The total consideration includes an early tender premium of $30 per $1,000 of notes tendered by 5 p.m. ET on Sept. 8, the early tender deadline.

As announced on Thursday, holders had tendered a total of $897,101,000 of notes as of the early deadline. Specifically, holders had tendered $561,815,000 of the 2024 notes and $335,286,000 of the 2026 notes.

Because the 2024 notes have a higher acceptance priority level than the 2026 notes and because there is a $300 million series sub-cap on the 2026 notes, Entel accepted for purchase all $561,815,000 of the tendered 2024 notes and $238,185,000 of the tendered 2026 notes at a proration factor of 71.04%.

In addition, because the amounts tendered by the early tender deadline exceeded the maximum tender offer amount, the company will not accept any notes tendered after the early deadline.

Settlement of the early tenders will be on Sept. 14.

Interest will also be paid to the settlement date.

The tender offers are set to expire at 11:59 p.m. ET on Sept. 22, with final settlement slated for Sept. 24.

Tenders may no longer be withdrawn.

There is a minimum tender condition for at least $300 million aggregate principal amount of notes, which has been satisfied.

There is also a financing condition relating to an issuance of senior debt securities.

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. (212 269-5550, 866 304-5477, entel@dfking.com, www.dfking.com/entel) is the tender agent and information agent.

The issuer is a Santiago-based telecommunications company.

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