By Rebecca Melvin
New York, July 13 – Chile’s Cencosud SA priced $1 billion of 4 3/8% senior notes due 2027 at 99.647 to yield 4.419%, or Treasuries plus 210 basis points, on Thursday, according to a term sheet.
The Rule 144A and Regulation S deal (expected ratings: Baa3//BBB-) was initially talked at $850 million in size. Pricing came on top of price talk.
The notes are guaranteed by Cencosud Retail SA and were sold via J.P. Morgan Securities LLC and BofA Merrill Lynch as joint lead managers and bookrunners.
Proceeds will be used to fund the tender offer for the company’s existing 5˝% senior notes due 2021 and 4 7/8% senior notes due 2023, to prepay other existing debt and for general corporate purposes.
Cencosud is a Santiago, Chile-based retail company.
| Issuer: | Cencosud SA
|
| Guarantor: | Cencosud Retail SA
|
| Amount: | $1 billion, upsized from $850 million
|
| Description: | Senior notes
|
| Maturity: | July 17, 2027
|
| Bookrunners: | J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Coupon: | 4 3/8%
|
| Price: | 99.647
|
| Yield: | 4.419%
|
| Spread: | Treasuries plus 210 bps
|
| Trade date: | July 13
|
| Settlement date: | July 17
|
| Ratings: | Moody’s: Baa3
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Treasuries plus 210 bps
|
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