Banco Santander-Chile gets tenders for $45.56 million of 5.375% notes by offer's early date

By Jennifer Chiou

New York, May 23 - Banco Santander-Chile announced the receipt of early tenders for $45,556,000 of its $300 million of 5.375% subordinated notes due 2014 in the offer for up to $75 million of the securities.

The offer will expire at midnight ET on June 6.

The total consideration per $1,000 principal amount of notes tendered by the early tender date, 5 p.m. ET on May 22, will be $1,065, including a $30 early tender payment.

The purchase price was determined through a modified Dutch auction.

As announced, each holder who tenders notes in the offer has to specify a bid price of $1,045 to $1,065, which includes the early tender payment and represents the minimum consideration that holder is willing to receive for those notes.

Holders who tender notes without specifying a bid price will be deemed to have specified $1,045.

The clearing price will be determined based on the bid price of all tendered notes in order of lowest to highest bid price. The clearing price will be the single lowest bid price that will allow Santander-Chile to purchase an amount of notes equal to the tender cap.

Santander-Chile has an early settlement option for notes tendered by the early tender date. If it elects to exercise this option and accept for purchase an amount of notes equal to the tender cap and it does not elect to increase the tender cap, then it will not accept for purchase any notes tendered after the early tender date.

If the aggregate amount of notes tendered by the expiration date with a bid price equal to or below the clearing price exceeds the tender cap, then Santander-Chile will first accept for purchase all notes tendered with a bid price less than the clearing price and then accept for purchase notes tendered with a bid price equal to the clearing price on a prorated basis.

Holders will also receive accrued interest.

The Santiago, Chile-based bank said the offer is subject to some customary conditions. It launched the offer on May 9.

The dealer managers are Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and Santander Investment Securities Inc. (212 407-0995). The tender and information agent is D.F. King & Co., Inc. (800 659-5550 or, for banks and brokers, 212 269-5550).

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