Banco Santander-Chile gets tenders for 79.56% of 6½% notes due 2020

By Susanna Moon

Chicago, Feb. 20 - Banco Santander-Chile said investors had tendered Ps. 118,409,000,000 principal amount, or about 79.56%, of its 6½% senior notes due 2020.

The tender offer ended at 5 p.m. ET on Feb. 19, with settlement set for Feb. 21. The offer for the company's Ps. 148,837,500,000 of outstanding Ps. 247,255,000,000 6½% notes began Feb. 20.

The purchase price will be par of Ps. 500,000 plus accrued interest to but excluding the settlement date.

Holders will be paid in dollars, calculated by exchanging the Chilean peso on Feb. 21, according to a previous company press release. The purchase price would be $900.33 based on the Dolar Observado rate reported by the Central Bank of Chile on Feb. 11.

The tender offer is part of Santander-Chile's active management of liabilities and capital, and the offer is focused on core capital generation as well as the optimization of the future interest expense, the company previously said.

The tender offer also provides liquidity in the market and allows noteholders the possibility to exit their investment in the notes, the company added.

Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955 collect) and Santander Investment Securities Inc. (212 407-7822 collect) are the dealer managers. D.F. King & Co., Inc. (800 488-8095, 212 709-3328 by fax, attn: Elton Bagley, or 212 269-5550 for banks and brokers) is the tender and information agent.

Banco Santander-Chile is a bank based in Santiago, Chile.

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