Watt’s Issues Local Chilean Bonds

Chilean food company Watt’s has issued UF2m ($92m) in 5-year and 20-year bonds, for UF1m each. The 5-year notes priced at 99.63 with a 3.40% coupon to yield 3.48%. Demand came from insurance companies and pension funds. The 20-year bond priced at 103.5 with a 4.2% coupon to yield 3.88%. Mutual funds and insurance companies were the main investors in that tranche. The deal received over 4x demand, according to a banker on the deal. “This is a good issuer, it has some new lines of business and has not come to the market in several years, so there was strong demand,” he says. LarrainVial was the sole lead. The notes are rated A on a national scale and the proceeds will be used to pay down short term debt. Watt’s last came to the local market in September 2008, pricing $79m equivalent in 2015 UF bonds, at a 4.25% yield. The company’s board authorized a bond shelf of up to UF6m ($274m) in March.