By Cristal Cody
Chicago, Sept. 9 – Empresa de Transporte de Pasajeros Metro SA sold a $650 million offering (A/A-) of 3.693% bonds on Wednesday with a 40-year tenor, according to a market source.
According to the company, the sale represents the longest-dated notes sold and the lowest coupon it has achieved.
The notes priced with a spread of Treasuries plus 175 basis points. Guidance had been tightened to the Treasuries plus 180 bps area, plus or minus 5 bps. Initial price talk started in the Treasuries plus 205 bps area.
Proceeds will be used for specific line extensions and projects for the subway system.
The Rule 144A and Regulation S deal was 3.2-times oversubscribed, at more than $2 billion.
Morgan Stanley and Santander were the bookrunners.
The issuer is the owner and sole operator of the subway system in the metropolitan region of Santiago, Chile.
| Issuer: | Empresa de Transporte de Pasajeros Metro SA
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| Issue: | Bonds
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| Amount: | $650 million
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| Maturity: | Sept. 13, 2061
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| Bookrunners: | Morgan Stanley and Santander
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| Counsel to issuer: | Gibson Dunn (U.S.) and Ried y Fabres (Chile)
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| Coupon: | 3.693%
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| Spread: | Treasuries plus 175 bps
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| Trade date: | Sept. 8
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| Ratings: | S&P: A
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| Fitch: A-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Treasuries plus 180 bps area, plus or minus 5 bps guidance; initial price talk in Treasuries plus 205 bps area
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