CTC Rings Chile Bond Sale

Telefonica Chile plans to sell up to UF6m ($217m) in bonds denominated in pesos and the UF inflation-linked unit April 15, following investor presentations. The unit, also known as Compania Telecomunicaciones de Chile, is proposing to sell 5-year bonds in UF or pesos, at coupons of 3.50% and 6.05%, respectively, and 9.5-year bonds in each, paying 4.25% and 7.00%, respectively. The issuer will determine the exact amount of each during the sale process. Proceeds will be used to refinance a bank loan. BBVA is managing the transaction, which comes from a shelf filed in February. CTC sold UF3m in 7-year notes in October 2005, in its last domestic placement, according to Dealogic.