Transelec Swaps Dollar Debt for Local

Chilean electric transmitter Transelec is expected to sell $303m-equivalent in local bonds today, and has announced the premium it will pay holders accepting its tender expiring Thursday. Transelec will offer $1,071.87 per $1,000.00 for its outstanding 7.875% 2011 bonds, plus an extra $30.00 per $1,000.00 to holders who had accepted before July 28. Holders representing more than $352m have accepted so far, the company says, exceeding the $220m limit. Transelec will determine the amounts to be repurchased from each holder on a pro-rata basis, once the offer is concluded Thursday. It will fund the repurchase with today’s domestic issuance. Transelec plans to sell UF3.3m ($127m) in 3.9% 2014 bonds, CLP33.6bn ($61.5m) in 6.2% 2014 and UF3m in 4.8% 2031s, according to bankers managing the sale, though those amounts could change based on demand during the sale process. Transelec has the ability to sell up to a total UF7.9m-equivalent across the three tranches. LarrainVial is managing the sale, rated A/A+ on a national scale and HSBC is dealer-manager on the buyback.