Codelco gives update in capped tenders for three series; pricing set

By Susanna Moon

Chicago, Aug. 8 – Corporacion Nacional del Cobre de Chile, or Codelco, said investors had tendered $941,519,000 of three series of notes in the maximum tender offers as of the early deadline at 5 p.m. ET on Aug. 7.

Codelco plans to accept for purchase all of the notes tendered before the early deadline, according to a company update on Tuesday.

As announced July 25, the issuer also was tendering for any and all of three other series in a separate set of offers that ended at 5 p.m. ET on July 31.

In the capped offers, the issuer is tendering for a principal amount of notes equal to $2.75 billion less the amount of notes tendered in the any-and-all offer.

Holders had tendered $1,413,144,000 of notes in the any-and-all offer.

In the capped offers, the tender breakdown is as follows with pricing set using a fixed spread over a reference U.S. Treasury security for a total purchase price per $1,000 principal amount:

• $404,564,000 of the $1.25 billion 3% notes due 2022, with pricing set using the 1¾% U.S. Treasury notes due June 2022 plus 95 bps for a reference yield of 1.807% and total purchase price of $1,011.14;

• $162,002,000 of the $750 million 4½% notes due 2023, with pricing set using the 1¾% U.S. Treasury notes due June 2022 plus 120 bps for a reference yield of 1.807% and total purchase price of $1,081.57; and

• $374,953,000 of the $2 billion 4½% notes due 2025, with pricing set using the 2 3/8% U.S. Treasury notes due May 2027 plus 120 bps for a reference yield of 2.253% and total purchase price of $1,073.44.

The total purchase price includes an early tender premium of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on Aug. 7, the early tender date.

Pricing was set at 2 p.m. ET on Aug. 7.

The capped tender will continue until 11:59 p.m. ET on Aug. 21.

Tendered notes may not be withdrawn after the early deadline.

Settlement for early tendered notes is expected to occur on Aug. 8, with any remaining tenders to be settled on Aug. 22.

In the any-and-all tender, investors had tendered the following amount of notes with pricing set using a fixed spread over a reference U.S. Treasury security for a purchase price per $1,000 principal amount as follows:

• $327,671,000 of the $600 million 7½% notes due 2019, with pricing set using the 1¼% U.S. Treasury notes due June 2019 plus 25 basis points for a reference yield of 1.352% and a purchase price of $1,084.51;

• $413,483,000 of the $1 billion 3¾% notes due 2020, with pricing set using the 1½% U.S. Treasury notes due July 2020 plus 38 bps for a reference yield of 1.503% and a purchase price of $1,058.71; and

• $662,022,000 of the $1.15 billion 3 7/8% notes due 2021, with pricing set using the 1¾% U.S. Treasury notes due June 2022 plus 60 bps for a reference yield of 1.832% and a purchase price of $1,057.97.

Pricing for the any-and-all offer was set at 2 p.m. ET on July 31, with settlement on Aug. 1. Notes tendered under guaranteed delivery will settle on Aug. 3.

HSBC Securities (USA) Inc. (212 525-5552 or 888 472-2456), J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874), BofA Merrill Lynch (646 855-8988 or 888 292-0070) and MUFG Securities Americas Inc. (212 405-7481 or 877 744-4532) are the dealer managers. Global Bondholder Services Corp. (212 430-3774, 866 924-2200 or gbsc-usa.com/Codelco/) is the tender agent and information agent.

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

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