Watt’s Ready to Roll

Watt’s is expected to issue up to UF1m ($48m) in Chile’s local bond market today, according to sources familiar with the company’s plans. The food company is likely to issue a 20-year UF-denominated tranche with a coupon of 4.2%, having been heard preferring the longer tenor to its other shorter options. The proceeds will be used to refinance liabilities. LarrainVial is managing the deal, rated A/A on a national scale. The company’s board authorized a bond shelf of up to UF6m in March 2011. In May 2011, Watt’s sold UF1m in 5-year bonds at a 3.48% yield, and UF1m in 20-year bonds at a 3.88% yield.