Chile’s Codelco begins tender offer for four series of notes

Chicago, Sept. 23 – Corporacion Nacional del Cobre de Chile, or Codelco, announced a tender offer for four series of notes on Monday, according to a notice.

The company has offered to tender any and all of its 3¾% notes due 2020 and its 3 7/8% notes due 2021.

Additionally, two series of notes are part of a capped tender offer, the 3% notes due 2022 and the 4½% notes due 2023.

In terms of the any and all tender offer:

• The principal amount outstanding on the 3¾% notes due 2020 is $402,186,000. Total consideration will be based on the 1 3/8% U.S. Treasury note due Oct. 31, 2020 plus 50 basis points for a hypothetical purchase price of $1,014.30.

• The principal amount outstanding on the 3 7/8% notes due 2021 is $236.96 million. Total consideration will be based on the 1½% U.S. Treasury note due Aug. 31, 2021 plus 65 bps for a hypothetical purchase price of $1,030.61.

The any and all offer will expire at 5 p.m. ET on Sept. 27. Total consideration amounts will be determined at 2 p.m. ET on Sept. 27. The settlement date is anticipated to be Oct. 2.

Noteholders can withdraw their notes from the any and all tender offer up to the expiration time.

For the maximum tender offer:

• The principal amount outstanding is $523,267,000 for the 3% notes due 2022. Total consideration will be based on the 1½% U.S. Treasury note due Aug. 15, 2022 plus 75 bps for a hypothetical purchase price of $1,015.56.

• The principal amount outstanding is $358,554,000 for the 4½% notes due 2023. Total consideration will be based on the 1¼% U.S. Treasury note due Aug. 31, 2024 plus 90 bps for a hypothetical purchase price of $1,071.61.

In relation to the cap, the maximum tender offer is $639,146,000 less the aggregate principal amount the notes tendered from the any and all offer.

The early tender date for the capped tender offer is 5 p.m. ET on Oct. 4.

The maximum tender offer will expire at 11:59 p.m. ET on Oct. 18. Noteholders may withdraw their notes from the offer at any time before 5 p.m. on Oct. 14.

Pricing will be determined at 2 p.m. ET on Oct. 4.

Early settlement could occur on Oct. 8 or, if not, settlement will take place around Oct. 22.

The tender offers are contingent upon receipt of funds from a proposed issuance of securities.

BofA Securities, Inc. (646 855-8998 or 888 292-0070), HSBC Securities (USA) Inc. (212 525-5552 or 888 472-2456), J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) and Scotia Capital (USA) Inc. (212 225-5559 or 800 372-3930) are the dealer managers.

D.F. King & Co., Inc. is the information agent (800 761 6521, 212 269-5550 or codelco@dfking.com, www.dfking.com/Codelco).

Codelco is a Santiago, Chile-based copper mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.