CMPC Lays out Rights Offering Terms

Chile’s CMPC has laid out terms for an equity rights offering, the first part of a fundraising process that could see the pulp producer raise $1.25bn in debt and equity this year. It is seeking to raise about $500m through the issue of 155m new shares to existing holders, at one share per 14.26 shares held. The process will be open May 9 to June 8 and would raise CLP271.25bn ($575m) at Thursday’s CLP1,750 closing price. CMPC is raising funds to help with the $2.1bn expansion of its Guaiba plant in Brazil. It is also on the road through Monday meeting fixed income investors, and could elect to issue bonds under a $500m authorization. It has also indicated that it could look to raise another $250m in new equity later this year.