Endesa's Chilean subsidiaries obtain $600 million loan

By Reshmi Basu

New York, Nov. 10 - Endesa's subsidiaries Enersis and Endesa Chile have signed new loans for $350 million and $250 million, respectively.

The new credits are aimed to refinance existing loans.

The spread on Enersis' new loan is 3/8% over Libor, an improvement over its current annual interest charge of 1.15% over Libor. Furthermore, the maturity for the new loan is 2008 compared to 2006 previously.

The maturity on the loan for Endesa Chile expires in 2010 with a spread of 3/8% over Libor.

The refinancing will result in savings of some $4 million a year for Enersis and nearly $2 million for Endesa Chile.

Over the last 12 months, Enersis has reduced its debt $310 million.

Lead managers for the Enersis loan were BBVA Securities, Inc., Caja Madrid, Citigroup Global Markets Inc. and Santander Invesments Securities Inc.

BBVA, Caja de Madrid, Citibank and Santander arranged the loan for Endesa Chile.

Madrid-based power generator company Endesa owns Enersis and Endesa Chile.

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