Colbun Sells Bonds, Closes Loan

Chile’s Colbun has sold $201m equivalent in local bonds and closed a $400m 5-year syndicated loan. The electricity generator placed $80.5m equivalent in 2014 bonds denominated in the UF inflation-linked unit at 99.57 with a 3.80% coupon to yield 3.89%, and $121m equivalent in 2028 UF-denominated bonds at 95.90 with a 4.50% coupon to yield 4.89%. It will use proceeds from the sale to restructure debt and finance investment plans. Celfin managed the transaction. Separately, Colbun closed a $400m 5-year syndicated loan that will refinance an existing $320m 5-year loan. The facility launched June 27 pays Libor plus 235bp. Colbun, which faced drought and fuel shortages that affected its ability to meet covenants on the previous facility, paid lenders only 40bp for the old loan, closed in 2006. Leads ABN, BBVA, Citi, Itau and Santander brought in Rabobank, ING, BNP, Calyon, HSBC, Scotia, Bank of Tokyo-Mitsubishi, and JPMorgan for the refinancing.