Supermercados del Sur Sets Bond Terms

Chilean retailer Supermercados del Sur plans to issue up to UF2.5m ($153m) in 4 tranches of local bonds, one of which will be denominated in CLP. A 2015 will have a coupon of 4.10%, a CLP-denominated 2015 piece will have a coupon of 7.20%, a 2020 piece will have a coupon of 4.30% and a 2028 piece will pay 4.70%. A banker off the deal explains that this issue could be compared to that of other BBB+ issuers such as construction company Salfacorp, although Salfacorp is a better-known credit. In September, Salfacorp issued UF2m ($86m) including a UF1m 5-year paying a 3.25% coupon priced at 98.65 to yield 3.47%, or 104bp over BCU-5. A UF1m 21-year (9.1-year duration) piece meanwhile priced with a 4.00% coupon at 99.56 to yield 4.00%, an 80bp spread over BCU-20 (11-12-year duration), or 120bp over BCU-10 (8.0-8.5-year duration). The Supermercados issue is expected to happen January 19. LarrainVial is leading the sale.