By Rebecca Melvin
New York, Jan. 30 – The Republic of Chile priced $2 billion of 3.24% 10-year notes (expected ratings: Aa3/A+/A) on Monday at 99.941 to yield 3.247%, or Treasuries plus 55 basis points, according to a final term sheet.
The deal was initially reported at $1.02 billion in new cash but was increased to $2 billion following results of a concurrent tender offer for outstanding notes.
Pricing came tighter than initial price talk, which was for a yield in the Treasuries plus 75 bps area.
The Securities and Exchange Commission-registered notes were sold via Citigroup, Goldman Sachs & Co., J.P. Morgan Securities and BofA Merrill Lynch as joint lead managers and bookrunners.
Proceeds are expected to be used for general budgetary purposes and to pay partially the purchase price for certain outstanding debt securities that are being tendered concurrently with the offering of new bonds.
A listing application is being made with the Luxembourg Stock Exchange to trade the bonds on the Euro MTF Market.
| Issuer: | Republic of Chile
|
| Amount: | $2 billion
|
| Description: | Notes
|
| Maturity: | Feb. 6, 2028
|
| Bookrunners: | Citigroup, Goldman Sachs & Co., J.P. Morgan Securities and BofA Merrill Lynch
|
| Coupon: | 3.24%
|
| Price: | 99.941
|
| Yield: | 3.247%
|
| Spread: | Treasuries plus 55 bps
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 6
|
| Expected ratings: Moody’s: Aa3
|
| S&P: A+
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price guidance: | Initial price talk of Treasuries plus 75 bps
|
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