Category: Chile

Empresas Copec, the Chilean fuel and forestry conglomerate, has priced UF7m ($290m) in bonds at 99.29 with a 4.00% coupon to yield 4.30%. The 21-year C series bonds have a duration of 13.94 years, with amortization starting in 2030, and are rated AA by Feller Rate and Fitch. IM Trust led the deal which priced Tuesday through Dutch auction. The C series was capped at UF10m from a 4-tranche deal that itself was for a maximum UF10m. Copec was also offering UF500 in 3.25% coupon 2014 bonds and CLP10m in 5.75% of 2014s. The issue was originally set to price December 17 after a roadshow December 9-11. Proceeds are earmarked mostly for investment project spending, with roughly 10% for debt refinancing, according to the prospectus. Copec owns Celulosa Arauco, the forestry company. Consolidated 2008 sales were $12.7bn, 70% from fuel, according to the issuer.

In line with most other LatAm central banks, Chile is widely expected to keep rates unchanged, at 0.50%, December 15. Morgan Stanley expects Chile to end 2009 with its monetary policy rate at 0.50% and to raise it to 1.75% by the end of 2010. Bank of America Merrill Lynch agrees that the rate will stay on hold for now, but forecasts that the rate will reach 1.50% in the second quarter of 2010. Chile-based Celfin also expects the rate to stay at 0.50%, and tightening to start by the end of Q2 2010.

Chilean IT company Sonda is shedding more light on its planned UF3m ($124m) bond issue. The issue will have 3 tranches: a 2014 denominated in UF paying about 3.5%; a 2014 in CLP at around 6.0%; and a 2030 in UF at about 4.5%. Proceeds will be used to finance Sonda’s expansion plans and to refinance debt, the company says. Celfin Capital is managing the sale.

Chilean IT company Sonda says it has registered with the local regulator a 25-year bond issue for UF3m ($124m). Proceeds will be used to finance the company’s expansion plans and to refinance debt, the company says. Celfin Capital is managing the sale. In August, Sonda expressed interest in acquiring industry peer Quintec for CLP150 per share or $43m in cash and soon after increased its offer to CLP165 per share or $49m after the target balked at the initial offer. Nevertheless, the offer was declared unsuccessful later in the same month. Celfin’s equity research team, which rates the company a buy, expects it to pursue other acquisition opportunities. It adds that Sonda reported net profit of CLP8.4m in Q3 2009, up 2.1% from the corresponding period of the previous year.

Chilean power-transmission company Transelec placed UF1.6m ($67.6m) in local bonds through a Dutch auction at 100.09 to yield 4.59% on Friday. According to the filing, duration will be 13.86 years. The day before, it placed UF1.5m ($63.5m) at 98.93 to yield 3.75%. According to the filing, duration will be 4.4 years. LarrainVial managed the sale.

Chilean power-transmission company Transelec placed UF1.5m ($63.5m) in local bonds through a Dutch auction at 98.93 to yield 3.75% on Thursday. According to the filing, duration will be 4.4 years. Larrain Vial managed the sale.

Chilean telecom company Grupo GTD says it has agreed to buy a 74.4% stake in local telephone company Telsur for $113.8m, or CLP341.4 per share, from conglomerate Quinenco, also based in Chile. The buyer estimates that Telsur’s 2009 Ebitda will total $51m and that its sales revenue will reach $133m. GTD’s Ebitda is expected to reach $80m and sales revenue $175m. Both companies combined have 480,000 internet, telephone and digital television customers. JPMorgan advised Quinenco, while GTD declines to name its advisors.

Chilean state-owned bank Banco del Estado has issued UF5m ($212m) in 3.6-year bonds at 99.02 to yield 3.4%, resulting in a spread of about 60bp over the corresponding central bank bond, it says in a regulatory filing. Fitch and Feller-Rate have a national AAA rating for the bonds. Proceeds will be used to match assets with liabilities, says a banker from Bancoestado Corredores de Bolsa, the bank’s brokerage arm, which is managing the sale.

Chile’s state-owned bank Banco del Estado says it will issue UF5m ($213m) in bonds through a Dutch auction December 1. The bonds, which have a national rating of AAA, have a 3.6 year maturity. Proceeds will be used to match assets with liabilities, says a banker from Bancoestado Corredores de Bolsa, the bank’s brokerage arm, which is managing the sale.

Chilean financial conglomerate Grupo Security says it plans to issue up to UF1.25m in 2032 bonds, to be priced at 4.5%. At least 30% of the proceeds will be used to refinance debt and the rest will be put towards capex. The issue is rated A+ on a local scale by ratings agencies Fitch and Feller. Grupo Security has holdings in the investment banking, insurance and banking sectors and has more than $8bn in assets under management. IMTrust is managing the deal.