Chile starts exchange offer for €4.95 billion of notes from four series

By Wendy Van Sickle

Columbus, Ohio, June 28 – The Republic of Chile launched an offer to exchange about €4.95 billion of eligible euro-denominated notes from four series for newly issued notes due in 2034, according a news release.

Holders of the following notes are invited to tender their notes for exchange:

• €1,641,550,000 outstanding 1 5/8% notes due Jan. 30, 2025 (ISIN: XS1151586945) with an eligible notes spread of minus 45 basis points;

• €1,109,770,000 outstanding 1¾% notes due Jan. 20, 2026 (ISIN: XS1346652891) with an eligible notes spread of minus 5 bps;

• €709,103,000 outstanding 1.44% notes due Feb. 1, 2029 (ISIN: XS1760409042) with an eligible notes spread of 55 bps; and

• €1,490,756,000 outstanding 1 7/8% notes due May 27, 2030 (ISIN: XS1236685613) with an eligible notes spread of 60 bps.

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 exchange ratio for each series will be determined 10 a.m. ET on July 6 by dividing the eligible notes’ present value by the new notes’ present value.

The eligible notes’ present value and the new notes’ present value of each series will be equivalent to the present value of the remaining principal and interest payments for such series of eligible notes and new notes, respectively, calculated at the corresponding eligible notes’ applicable yield and the new notes’ applicable yield, respectively.

The applicable yield of the new notes will be set using an interpolated mid-swap rate plus a spread of 128 bps to be spotted at or around 10 a.m. ET on the offer’s expiration date.

The offer will expire at 11 p.m. ET on July 6.

The expected settlement date is July 12.

Global Bondholder Services Corp. is the information and depositary agent for the offer (212 430-3774, 855 654-2015, contact@gbsc-usa.com).

The dealer managers are Credit Agricole CIB (Liability.Management@ca-cib.com, us.liabilitymanagement@ca-cib.com), HSBC Securities (USA) Inc. (888 HSBC-4LM, 212 525-5552, liability.management@hsbcib.com), Banco Santander, SA (LiabilityManagement@gruposantander.com), Bank of Nova Scotia, London Branch (833 498-1660, LM@scotiabank.com) and Societe Generale (+33 1 42 13 32 16, liability.management@sgcib.com).

Chile announced on June 28 that it intends to offer new euro-denominated sustainability-linked notes.

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