Transelec Launches Bond Tender

Chile’s Transelec is looking to swap dollar debt for peso debt, and has launched a tender offer to buy up to $220m of its outstanding 7.825% of 2011 bonds. The transmitter is offering to pay principal plus accrued interest at 200bp over the yield on the 2011 US Treasury bond. Holders tendering by July 28 will receive an additional $30 per $1,000. The tender offer expires August 14, contingent on a $100m minimum acceptance and Transelec’s successful raising of debt domestically. HSBC is dealer manager. Transelec originally sold $400m of the 2011s in 2001 through ABN AMRO and Salomon Smith Barney. Its most recent domestic bond was a $22m equivalent 4.5% 2027 inflation-linked note sold in April 2008 through Bancoestado.