By William Gullotti
Buffalo, N.Y., March 22 – Parque Arauco SA placed a total of 3 million unidades de fomento (about $130 million) 3.15% bonds at a 130 basis point spread over the central bank’s benchmark rate, according to a press release on Wednesday.
The single tranche of Bparc-AF bonds is structured at 21 years, 10 years without amortization and a duration of around 12 years.
Link Capital Partners and BCI were the bookrunners.
The offering was 1.5 times oversubscribed.
Proceeds will be used to continue flatting the company’s maturity profile, to stabilize future amortizations and for additional liquidity. According to the press release, the completion of this issuance further balances duration levels between lease contracts and liabilities (4.8 and 5.8 times, respectively).
Parque Arauco is a Santiago, Chile-based shopping center developer.
| Issuer: | Parque Arauco SA
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| Amount: | UF 3 million (about $130 million)
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| Issue: | Bparc-AF 21-year bonds
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| Tenor: | 21 years
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| Bookrunners: | Link Capital Partners and BCI
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| Coupon: | 3.15%
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| Announcement date: | March 22
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| Spread: | Central bank benchmark rate plus 130 bps
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