Category: Chile

Chilean investment firm Sociedad de Inversiones Oro Blanco has raised CLP146.5bn ($260.2m), through a share rights offering to existing holders. The investment vehicle holding stakes in companies including chemical producer SQM sold 18.5bn shares at CLP7.92 each, a price reached through auction. Proceeds will fund future investments. LarrianVial managed the transaction. Oro Blanco shares closed at CLP9.00 Tuesday.

Chilean investment firm Sociedad de Inversiones Oro Blanco is set to sell 18.5bn shares today, it says in a regulatory filing. The shares will be sold at a minimum price of CLP6.746 through an auction. It does not indicate the use of proceeds for the sale, and manager LarrainVial declines to provide information beyond the filing. Two vehicles controlled by Oro Blanco president Julio Ponce Lerou plan to purchase an amount in proportion to their holdings, the filing says. Oro Blanco shares closed at CLP8.89 Monday.

Chilean power Transmitter Transelec is looking to return to the local debt markets after more than a year. It has approved a program to issue up to UF20m ($745m) in 10- and 30-year bonds, to be denominated in the UF inflation unit, US dollars or pesos, it says. Transelec did not indicate when it plans to conduct the first sale from the program. Its last local bond came in April 2008, when it sold UF0.5m in 4.25% 2027 notes.

Chilean retailer Cencosud has issued $205m equivalent in UF-denominated bonds in the local market. It priced UF4.5m ($167m) in 2030 bonds with a 4.70% coupon at 97.04 to yield 4.95%, and UF1m in 2015s at 101.13 with a 4.11% coupon to yield 3.85%. The retailer had the option to choose, based on demand, among the 2 tranches it sold and a peso-denominated 2016, but opted to sell only UF paper and allocate most of the offer in the long-dated UF tranche. Cencosud plans to use proceeds to refinance debt. BBVA managed the transaction, rated AA on a national scale. Cencosud last visited the domestic market in January, selling UF3m in 5.70% 2030 bonds at par.

Banco Itau Chile has sold UF1.5m ($56m) in inflation-indexed bonds on the domestic market. The 2023 notes priced at 106.53 with a 5.00% coupon to yield 4.53%. The spread is 103bp over the Central Bank benchmark, Itau says, claiming the lowest such spread for a Chilean bank bond since the start of the credit crisis in September. It plans to use proceeds to fund long-term operations. Itau Chile managed the sale, rated AA minus on a national scale. The Brazilian bank entered the Chilean market in 2007 after purchasing BankBoston assets from Bank of America. The Chilean unit last sold domestic bonds last June, placing $84m in dollar and UF-denominated notes.

Chilean oil and gas producer Enap is expected to provide indication in the coming week about which banks it will shortlist for a planned $300m plus 3-year loan facility and bridge, presumably 1-year, also in the $300m size area, say bankers eyeing the mandate. Proceeds are for nearby refinancing, and the shorter facility will be taken out with a bond ahead of maturity, according to the company. Price estimates on the 3-year are around Libor plus 275bp, give or take 25bp, say bankers. Institutions heard pitching include BBVA, Santander, HSBC, BNP, RBS and Calyon. Enap’s higher-rated cousin Codelco was also entertaining bids from banks, but demand to lend to the copper miner was apparently so strong that it has allowed the borrower to sidestep syndication in favor of bilaterals. Pricing suggestions apparently fell to the 200bp over Libor area on an all-in basis, which led a number of lenders to desist from pitching. “The Japanese banks may still be interested in lending at those levels,” says a banker at a European shop. Codelco was heard eyeing funds to help address a $400m maturity this year, though it apparently has cash on hand.

Banco Itau Chile plans to issue UF1.5m ($56m) in inflation indexed bonds on the domestic market Thursday. The 23.5-year bonds with a 5.0% coupon will pay a yield to be determined during the sale process. Itau Chile is managing the sale, rated AA minus on a national scale.

S&P has lowered its ratings on Chilean sugar producer Empresas Iansa to CCC+ (negative) from B minus amid concerns over liquidity and financial flexibility over the next few quarters, given the upcoming harvest season for sugar beets, which often causes working capital investment to peak. “Iansa’s financial flexibility is aggravated by significant short-term debt maturities and projected minimal free cashflow, and the current limits on the firm’s incurring additional indebtedness,” says the agency. The ratings reflect a highly leveraged financial profile with narrow financial flexibility and a weak liquidity position. They also incorporate Iansa’s leading position as Chile’s only sugar producer, accounting for close to 60% of the country’s sugar market.

Chilean retailer Cencosud is set to issue up to UF5.5m ($205m) in peso and UF-denominated bonds in the local market. In a sale expected Thursday, it may place a combination of 4.11% 2015 UF bonds, 5.8% 2015 peso bonds and 4.7% 2030 UF bonds. Cencosud plans to use the proceeds to refinance existing debt. BBVA is managing the transaction, rated AA on a national scale. The retailer last visited the domestic market in January, selling UF3m in 5.70% 2030 bonds at par.

Chilean shipping company Vapores has received a commitment from a group of ship owners guaranteeing their 100% participation in a $360m capital increase. The agreement is part of a $710m fundraising plan approved in April, which includes a $130m equity increase now underway, followed by an increase of $220m. The funds are being raised from existing shareholders and a group of ship owners that leases ships to Vapores. It expects to complete the $130m first phase by the end of this month. HSH Corporate is advising on the fundraising and evaluating a possible sale of non-core assets and contract renegotiations, among other cost-cutting measures.