Chile plans five-day exchange offer for up to $6.48 billion of notes

By Mary-Katherine Stinson

Lexington, Ky., June 27 – The Republic of Chile intends to launch an offer that is expected to last at least five days to exchange about $6.48 billion of eligible dollar-denominated notes from six series for notes due in 2036 or 2054, according an FWP filed with the Securities and Exchange Commission.

Chile will invite holders of its group A notes, which are as follows, to tender them in exchange for either 2036 or 2054 notes:

• $318,728,000 outstanding 3 1/8% notes due 2025 (ISIN: US168863BW77) with an eligible notes spread of 0 basis points based on a reference to the 4 ¼% U.S. Treasury note due May 31, 2025;

• $709,316,000 outstanding 3 1/8% notes due 2026 (ISIN: US168863CA49) with a spread of 20 bps based on a reference to the 4 1/8% U.S. Treasury note due June 15, 2026;

• $2 billion outstanding 3.24% notes due 2028 (ISIN: US168863CF36) with a spread of 50 bps based on a reference to the 3 5/8% U.S. Treasury note due May 31, 2028; and

• $1.758 billion outstanding 2.45% notes due 2031 (ISIN: US168863DP09) with a spread of 65 bps based on a reference to the 3 3/8% U.S. Treasury note due May 15, 2033.

Chile will invite holders of its group B notes, which are as follows, to tender them in exchange for 2054 notes:

• $407.62 million outstanding 3 5/8% notes due 2042 (ISIN: US168863BP27) with a spread of 110 bps based on a reference to the 3 7/8% U.S. Treasury note due May 15, 2043; and

• $1,284,412,000 outstanding 3.86% note due 2047 (ISIN: US168863CE60) with a spread of 125 bps based on a reference to the 3 5/8% U.S. Treasury note due Feb. 15, 2053.

In exchange for each $1,000 in principal tendered and accepted holders will receive $1,000 principal of new notes multiplied by the relevant exchange ratio.

The relevant pricing details are expected to be spotted at or around 10:00 a.m. ET on the offer’s expiration date.

The exchange offer will be subject to proration.

The expected settlement date is expected to take place after and be conditioned on the settlement of a related new notes offering, for notes due 2036 and 2054 which will fungible with the exchange notes issued.

Chile announced on June 27 that it intends to offer new dollar-denominated sustainability-linked notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.