Chileans Return to Changed Loan Market

After months of being away from the international loan market, Chilean credits, which command some of the tightest margins in the region, are returning to a vastly changed landscape. Endesa Chile and CMPC are heard to have sent out RFPs for new facilities which combined could total up to $850m. Despite an investment grade zip code, the two companies may experience significant upwards adjustment in margins. Endesa, is heard to be seeking a bullet loan of between $400m-$600m with a tenor of up to six years. One banker who was not invited to pitch guesses the credit could raise funds at Libor plus 60bp-75bp in today’s market. In February 2007, Endesa raised a $200m standby revolver at Libor plus 25bp. CMPC, a paper and pulp conglomerate, is also heard out with request for pitches on a $150m facility.