Carozzi Preps Domestic Issue

Empresas Carozzi plans to issue up to UF3m ($130m) in Chile’s domestic bond market , likely at the end of June, says a person familiar with the sale. The Chilean food and agricultural products producer can choose between a 7-year UF bond with a 3.7% coupon and 2-year grace period, a 7-year peso bond with a 7.10% coupon and 2-year grace period, and a 20-year UF bond with a 4.1% coupon and a 15 year grace period. Banchile-Citi is managing the sale, rated A+/A on a national scale, with proceeds going to refinance liabilities. Carozzi last issued in April 2009, selling $126m-equivalent in 7 and 21-year inflation-indexed bonds on the domestic market, through BBVA.