Category: Chile

Chilean utility AES Gener priced a new 2021 Thursday as part of a debt exchange and tender for its outstanding 2014s. In all its sold $400m of the 10-year notes at 99.037 with a 5.25% coupon to yield 5.375% or 242bp over UST, coming at the tight end of 5.375%-5.50% guidance. Close to $300m of that took the form of new money, while the remainder is to be used in the exchange. As of July 27, the company had received tenders to purchase $151.07m of 7.50% 2014s or 37.77% of the outstanding senior notes, while also receiving offers to exchange $100.20m of the notes for the new 2021. At the same in a separate local transaction, the company received tenders to purchase $93.8m of Chilean 8% notes due 2019 or about 48% of the outstanding bonds. Investors who opted for new bonds will receive $1,000 in 2021s plus $150 in cash per $1,000 principal of existing bonds if they had 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 got $1,130 per $1,000, and only had until July 27. Citi and Deutsche Bank are acting as dealer managers.

Chile’s Sociedad de Inversiones y Servicios de la Construccion has raised UF2.5m ($119m) from the sale of two local bonds. The investment vehicle of construction trade association Camara Chilena de la Construccion chose to place two of three possible tranches in a deal that saw 2.3x demand. A CLP21.8bn ($48m) 2016 peso-denominated tranche priced at 100.01 with a 6.80% coupon to yield 6.79%. A UF1.5m UF-denominated 2032 tranche with a 10-year grace period priced at 96.96 with a 3.6% coupon to yield 3.86%. Both tranches came at the same spread of 74bp to government bonds, according to a banker on the sale. A 5-year UF tranche included in the original registration was not used. Celfin and IM Trust managed the sale, rated AA/AA+ on a national scale. Inversiones la Construccion 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.

Chile’s AES Gener could price a new 5.25% 2021 as soon Thursday as it looks to retire $400m in outstanding 7.5% 2014s. The electricity provider is offering the 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 is also 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. The offer is contingent upon a minimum $200m overall acceptance to the USD tender, as well as Gener successfully issuing enough new 2021s to cover costs associated with the cash portion of the USD bond tender and the local bond tender. Citi and Deutsche Bank are acting as dealer managers.