La Polar Rights Offer Hits Minimum

Chile’s La Polar reached a subscription level of CLP91.2bn ($193m) for its equity capital raise as of Friday, it says, topping the minimum threshold of CLP90bn. The retailer is targeting up to CLP120bn in the offer scheduled to close today. The price of subscription is equal to the average price of the three days prior to the buyer’s subscription minus a 5% discount, with a minimum price of CLP160 per sahre. Shares closed at CLP237 Monday. The retailer set aside nearly $1bn-equivalent in loan loss provisions last year amid accusations of fraud after the company arbitrarily overcharged its credit clients and is undergoing the capital increase as part of a $900m restructuring with creditors. Creditors recently granted an extension to October 29 to complete the equity sale. Celfin is managing the capital raise, and Lazard is the advisor on the restructuring.