Celulosa Arauco Readies Local Debt

Chilean timber producer Celulosa Arauco is preparing to sell dollar and UF-denominated bonds in the local market. A 2014 dollar-denominated tranche of up to $355m will be priced at Libor plus 1.80%, and 2014 and 2029 tranches of up to UF10m ($333m) each will offer coupons of 3.50% and 4.25%, respectively. The notes are rated AA on a national scale. Arauco will target retail with the dollar and shorter UF piece, while the longer term is heard marketed to the country’s pension funds. The grower and pulp producer with operations in Chile, Brazil, Argentina and Uruguay will use proceeds to refinance short and long-term debt. IM Trust is managing the transaction.