Chile’s Copec Issues C Series Bonds

Empresas Copec, the Chilean fuel and forestry conglomerate, has priced UF7m ($290m) in bonds at 99.29 with a 4.00% coupon to yield 4.30%. The 21-year C series bonds have a duration of 13.94 years, with amortization starting in 2030, and are rated AA by Feller Rate and Fitch. IM Trust led the deal which priced Tuesday through Dutch auction. The C series was capped at UF10m from a 4-tranche deal that itself was for a maximum UF10m. Copec was also offering UF500 in 3.25% coupon 2014 bonds and CLP10m in 5.75% of 2014s. The issue was originally set to price December 17 after a roadshow December 9-11. Proceeds are earmarked mostly for investment project spending, with roughly 10% for debt refinancing, according to the prospectus. Copec owns Celulosa Arauco, the forestry company. Consolidated 2008 sales were $12.7bn, 70% from fuel, according to the issuer.