Chile’s Codelco posts early tenders for $781.43 million 4½% notes

By Sarah Lizee

Olympia, Wash., Feb. 11 – Corporacion Nacional del Cobre de Chile, or Codelco, announced that holders had tendered $781,428,000 of the company’s 4½% notes due 2025 and 4½% notes due 2023 as of the early deadline of 5 p.m. ET on Feb. 8.

As previously reported, the issuer launched the capped tender offer for $1,621,355,000 of 4½% notes due 2025 and $587,498,000 of 4½% notes due 2023.

As of the early deadline, Codelco took in early tenders for the following amount of notes, with the notes listed in order of priority acceptance levels and total purchase price for each $1,000 principal amount set at 2 p.m. ET on Feb. 8 using a reference security and a fixed spread:

• $552,754,000 of 4½% notes due 2025 with pricing set at $1,044.32 using the 2 5/8% U.S. Treasury note due Dec. 31, 2023 plus 129 basis points for a reference yield of 2.445%; and

• $228,674,000 of 4½% notes due 2023 with pricing set at $1,052.18 using the 2 5/8% U.S. Treasury note due Dec. 31, 2023 plus 80 bps for a reference yield of 2.445%.

The total purchase price includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by the early deadline.

Holders will also receive accrued interest up to but excluding the settlement date.

Settlement is expected to occur on Feb. 12 for early tendered notes and Feb. 27 for final settlement.

As previously reported, the maximum purchase amount in the capped offer was set at $1,907,497,000 less the principal amount of the notes purchased in the company’s any-and-all tender for three series of notes that ended at 5 p.m. ET on Feb. 1.

In the any-and-all offer, the company accepted tenders for the following amount of notes with pricing for each $1,000 principal amount set at 2 p.m. ET on Feb. 1 using a reference security and a fixed spread, according to an announcement by the company:

• $183,051,000 of the $585,237,000 3¾% notes due 2020 with pricing set at $1,017.25 using the 2½% U.S. Treasury note due Dec. 31, 2020 plus 20 bps for a reference yield of 2.529%;

• $247,814,000 of the $484,774,000 3 7/8% notes due 2021 with pricing set at $1,021 based on the 2½% U.S. Treasury note due Dec. 31, 2020 plus 54 bps for a reference yield of 2.529%; and

• $314,219,000 of the $837,486,000 3% notes due 2022 with pricing set at $990.13 based on the 2½% U.S. Treasury note due Jan. 15, 2022 plus 80 bps for a reference yield of 2.505%.

The tenders are contingent on the company receiving enough proceeds from a proposed issue of securities to fund the offers, the previous release noted.

As reported, Codelco priced $1.3 billion of 4 3/8% senior notes at 93.054 on Jan. 28 to yield 4.815%, or Treasuries plus 175 bps.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), HSBC Securities (USA) Inc. (212 525-5552 or 888 472-2456), J.P. Morgan Securities LLC (212 834-8209;7279 or 866 846-8209;2874) and Scotia Capital (USA) Inc. (212 225-5559 or 800 372-3930) are the dealer managers. Global Bondholder Services Corp. (866 470-4200, 212 430-3774 or gbsc-usa.com/Codelco/) is the tender agent and information agent.

Codelco is a Santiago, Chile-based copper mining company.

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