Category: Chile

Chile’s Sociedad de Inversiones y Servicios de la Construccion has unveiled more details on its upcoming UF2.5m ($118.9m) 3 tranche domestic bond issue after filing a prospectus late last week. A pricing date has been set for July 28. The borrower plans to issue up to CLP54.8bn in a Series A tranche with a 6.8% coupon, a Series B tranche of up to UF2.5m paying a 3.2% coupon, and a Series C tranche of up to UF2.5m with a 3.6% coupon. Series A and B carry 5-year tenors and bullet payments. Series C has a 21-year tenor with a 10-year grace period. Celfin and IM Trust are managing the sale, rated AA/AA+ on a national scale. The issuer is an investment vehicle of a construction trade association called Camara Chilena de la Construccion. It holds stakes in the AFP Habitat pension fund, insurance companies Camara and Isapre Consalud, while also having holdings in clinic operator Red Salud and other companies.

Holders of Chilean steelmaker CAP’s 2036 bonds have agreed to sell back $130m (65%) of the bonds in a tender offer, meaning it will spend $149m on the repurchase. CAP offered holders of the $200m in outstanding 7.375% 2036 bonds $1,117.33 per $1,000 principal in the offer expiring Tuesday. Citi was dealer manager. The 2036s were originally sold in 2006 through Citi and HSBC and priced at 99.761 to yield 7.395% or 250bp over. The BBB minus rated CAP recently extended a 3-year loan into a 5-year facility, upsizing to $200m from an original $150m.

Chilean steelmaker Cap has set the repurchase price for the tender of its $200m of outstanding 7.375% 2036 bonds. It will offer holders $1,117.33 per $1,000 principal in the offer that was to expire at 5pm Tuesday, with settlement July 22. CAP has not yet give the results. Citi is acting as dealer manager. The 2036s were originally sold in 2006 through Citi and HSBC and priced at 99.761 to yield 7.395% or 250bp over. The BBB minus rated CAP recently extended a 3-year loan into a 5-year facility, upsizing to $200m from an original $150m.

Chile’s AES Gener has launched a tender offer for its $400m in outstanding 7.5% 2014 USD bonds with the intention of also launching a new 2021. The electricity provider is offering 5.25% 2021s or cash to holders of the 2014s. Investors who opt for new bonds will receive $1,000 in 2021s plus $150 in cash per $1,000 principal of existing bonds if tendered prior to July 27. Thereafter, they will receive new bonds plus $110 in cash as long as they tender before the final deadline of August 10. Holders choosing cash will get $1,130 per $1,000, and have only until July 27. Gener also plans to sell new 2021s to the market, and is separately tendering for its local 8.0% 2019 bonds in a domestic offer. Fitch has put an up to $475m size on the new issue after rating it BBB minus last week. The offer is contingent upon a minimum $200m overall acceptance to the USD tender, as well as Gener successfully issuing enough new 2021s to the market to cover costs associated with the cash portion of the USD bond tender and the local bond ender. Citi and Deutsche Bank are acting as dealer managers.