Chile begins cash tender offer for seven bond series

By Rebecca Melvin

New York, June 17 – Chile has begun an offer to purchase for cash debt securities from seven series of bonds, according to a press release.

Chile is offering to repurchase its 3 7/8% notes due 2020, of which $681,291,000 is outstanding; 3¼% notes due 2021, of which $508,202,000 is outstanding; 2¼% notes due 2022, of which $542,682,000 is outstanding; 3 1/8% notes due 2025, of which $497,157,000 is outstanding; 3 1/8% notes due 2026, of which $840,333,000 is outstanding; 3 5/8% notes due 2042, of which $456.81 million is outstanding; and 3.86% notes due 2047, of which $1,541,831,000 is outstanding.

The tender offer will expire at noon ET on June 17 for the preferred tenders and at 4 p.m. ET on the same day for the non-preferred tenders, with settlement expected to occur on June 24.

Chile is offering the following per $1,000 principal amount of bonds:

• For the 3 7/8% notes due 2020, Chile will pay a fixed spread of U.S. Treasuries plus 5 basis points for a hypothetical purchase price of $1,020.00;

• For the 3¼% notes due 2021, Chile will pay a fixed spread of Treasuries plus 31 bps for a hypothetical purchase price of $1,023.50;

• For the 2¼% notes due 2020, the issuer will pay Treasuries plus 15 bps, for a hypothetical price of $1,010.00;

• For the 3 1/8% notes due 2025, the issuer will pay a spread of Treasuries plus 52 bps, for a hypothetical price of $1,041.00;

• For the 3 1/8% notes due 2026, the issuer will pay Treasuries plus 37 bps for a hypothetical amount of $1,040.00;

• For the 3 5/8% notes due 2042, the issue will pay Treasuries plus 76 bps for a hypothetical purchase price of $1,045.00; and

• For the 3.86% notes due 2047, the issuer will pay Treasuries plus 89 bps, for a hypothetical price of $1,067.00.

BNP Paribas, Citigroup and HSBC are the dealer managers for the tender.

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