Chile in Ps. 1.35 Trillion Debt Offerings and Concurrent Tender Offer
May 17, 2019
Cleary Gottlieb represented the Republic of Chile (Chile) in its concurrent offering of Ps. 484.96 billion 4% bonds due 2023, Ps. 506.69 billion 4.7% bonds due 2030, and Ps. 350.99 billion 5.1% bonds due 2050 (collectively, the new bonds) in a global offering comprised of an offering to the public in Chile, and an offer and sale of bonds to investors outside of Chile.
Chile offered to investors outside of Chile Ps. 170.91 billion of the 2023 bonds, Ps. 267.59 billion of the 2030 bonds, and Ps. 22.07 billion of the 2050 bonds. Joint lead managers and bookrunners were Itau BBA USA Securities Inc., Santander Investment Securities Inc., and Scotia Capital (USA) Inc. Both offerings launched on May 8, 2019, priced on May 15, 2019, and closed on May 17, 2019.
Chile used a portion of the net proceeds of the new bonds offering to pay the purchase price of certain SEC-registered bonds governed by New York law and Rule 144A-Regulation S bonds governed by Chilean law, which were tendered to Chile pursuant to a tender offer that launched on May 8, 2019, and settled on May 17, 2019. This tender offer was the first offer made by Chile to holders of bonds governed by Chilean law held by investors outside of Chile. Itau BBA USA Securities Inc., Santander Investment Securities Inc., and Scotia Capital (USA) Inc. acted as dealer managers, and Global Bondholder Services Corp. acted as tender and information agent.