By Cristal Cody
Chicago, Sept. 6 – Corporacion Nacional del Cobre de Chile (Codelco) placed $2 billion of bonds over two tranches (A3/A/A-) on Tuesday to a receptive audience with an order book of 250 investors that hit $9 billion, according to a press release and a market source.
Allocations were more generous on the $1.3 billion of 5.95% notes due Jan. 8, 2034 that priced with a yield of 5.966%, or a spread of 170 basis points over Treasuries. Initial talk had the notes coming 40 bps higher, in the 210 bps area.
The second tranche priced as $700 million of 6.3% notes due Sept. 8, 2053. The yield was 6.331% and the spread came at 195 bps to Treasuries, after talk was again 40 bps higher in the 235 bps area.
BNP Paribas, Citi, JPMorgan, Santander and Scotiabank led the deal.
Proceeds will be used to finance the company’s project portfolio and strengthen liquidity.
Codelco is a Santiago, Chile-based copper mining company.
| Issuer: | Corporacion Nacional del Cobre de Chile (Codelco)
|
| Amount: | $2 billion
|
| Issue: | Bonds
|
| Bookrunners: | BNP Paribas, Citi, JPMorgan, Santander and Scotiabank
|
| Trade date: | Sept. 5
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Fitch: A-
|
|
|
| 10-year bonds
|
| Amount: | $1.3 billion
|
| Maturity: | Jan. 8, 2034
|
| Coupon: | 5.95%
|
| Yield: | 5.966%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 210 bps area
|
|
|
| 30-year bonds
|
| Amount: | $700 million
|
| Maturity: | Sept. 8, 2053
|
| Coupon: | 6.3%
|
| Yield: | 6.331%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | Treasuries plus 235 bps area
|
|
|
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