April 26, 2019 |
Chilean pulp company raises $1bn in a two-part debt sale, more than double the previously planned amount
Chile's Celulosa Arauco has sold $1bn in bonds, more than twice the previously planned amount, as investors filled the order book to more than 3.5 times the offer, LatinFinance has heard.
The bookrunners JPMorgan and Scotiabank sold 10-year notes at a reoffer price of 99.308 to yield 4.336% and 30-year notes at 98.669 to yield 5.592%. The spread on the 2029s came to 180bp over US Treasury notes, down from the initial price talk around 195bp, while it came to 265bp on the 2049s, down from close to 300bp, said a banker working on the deal.
Arauco said it had agreed to buy back $96.7m in outstanding bonds, with $33.m in 7.25% 2019s and $64.4m in 5% 2021s. The company had $203m in outstanding 2019s and $200m in outstanding 2021s before the buyback.