Transelec Ties Up Bond Tender

Chile’s Transelec has concluded a tender offer for its 7.875% 2011 bonds – an anticlimactic announcement as offers had well exceeded the $220m limit at the July 28 early participation date. Holders of $351m, or 75.67% of the outstanding bonds, accepted the offer that expired August 14, and will receive allocation on a pro-rata basis. Transelec will pay holders $1,071.87 per $1,000.00. The electricity transmitter is funding the $220m repurchase with proceeds from the sale of $306m equivalent in 2014 and 2031 notes. HSBC managed the tender and LarrainVial the domestic sale.