Transelec Lands Local Notes

Chilean electric transmitter Transelec has sold $303m-equivalent in local bonds denominated in CLP and the UF inflation-linked unit, it says. The company says it is is looking to convert its liabilities from dollars to local currency to match its revenues. It placed UF3.3m ($127m) in 3.900% 2014 bonds at 100.43 to yield 3.800%, CLP33.6bn ($62m) in 5.7% 2014s at 99.65 to yield 5.780% and UF3m in 4.800% 2031s at 100.09 to yield 4.790%. Proceeds from the sale, rated A/A+ on a national scale, will support Transelec’s buyback of up to $200m of its outstanding 7.875% 2011 bonds, now being tendered through an offer set to expire today. Holders representing more than $352m have accepted so far, the company says, and it plans to determine the amounts to be repurchased from each holder on a pro-rata basis. LarrainVial managed the sale, and HSBC is dealer-manager on the buyback.