Chile’s Falabella offers to buy $550 million from two series of notes

By Mary-Katherine Stinson

Lexington, Ky., Oct. 4 – Chile’s Falabella SA announced a cash tender offer for all $500 million of its outstanding 3¾% senior notes (Cusips: 78386FAA4, P82290AA8) due 2023 and up to $150 million of the $400 million outstanding 4 3/8% senior notes (Cusips: 78386FACO, P82290AGS) due 2025 for a total maximum principal repurchase of $550 million, according to a company release.

The purchase price of the 2023 notes will be $1,048.50 per $1,000 note plus accrued and unpaid interest up to the settlement date.

The expiration date which is also the withdrawal deadline for the offer is 8 a.m. ET on Oct. 12 with a settlement date of Oct. 15.

The purchase price of the 2025 notes will be $1,085 per $1,000 note plus accrued and unpaid interest up to the settlement date.

The consideration for the 2025 notes includes a $30 early tender premium for noteholders who tender by the early deadline.

The early tender deadline for the 2025 notes is 5 p.m. ET on Oct. 18 which is also the withdrawal deadline.

The early settlement date is Oct. 21.

The tender offer for the 2025 notes expires at 11:59 p.m. ET on Nov. 1 with a final settlement date of Nov. 4.

The tenders of the 2025 notes are subject to proration.

The tender offers on the Regulation S and Rule 144 notes are subject to completion of the company’s anticipated offering and sale of new notes which will enable the cash purchase of the tendered notes.

Noteholders who are tendering existing notes and wish to subscribe to the new notes should obtain a unique identifier code from the dealer managers. Tendering noteholders are not guaranteed any priority in the allocation of new notes.

D.F. King & Co., Inc. (800 669-5550, 212 269-5550, falabella@dfking.com) is the information agent and tender agent on the deal.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106), Goldman Sachs & Co. LLC (800 828-3182, 212 357-1452) and J.P. Morgan Securities LLC (866 846-2874, 212 834-7279) are serving as the dealer managers.

Falabella is a retail company based in Santiago.

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