Chile's CTC offers $200 million of securities in the Yankee market through J.P. Morgan.NEW YORK--(BUSINESS WIRE)--July 22, 1996--Compania de Telecomunicaciones de Chile S.A. (CTC CTC - Cornell Theory Center ), the leading telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. company in Chile, today issued $200 million of 10-year 7.625% notes through lead manager J.P. Morgan. The issue, CTC's first straight Yankee bond Yankee Bond A bond denominated in U.S. dollars and issued in the United States by foreign banks and corporations. Notes: This type of a bond is known as a foreign bond. issue, was launched off a $400 million shelf registration filed this month. The notes, due July 15, 2006, were priced at 99.756 to yield 7.661% or 83 basis points over the 10-year U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. note. Interest on the notes is payable semi-annually on January 15 and July 15 of each year, commencing January 15, 1997. The issue is rated Baa1 by Moody's Investor Service, A- by Standard & Poor's Corporation, and A- by Duff & Phelps Credit Rating Co. Timothy Purcell, managing director and head of J.P. Morgan's Santiago office, said: "The issue was notable for setting a new benchmark for Chilean sovereign ceiling issues, at 83 basis points over the 10-year Treasury, reflecting the continued growth of investor interest in Chile and the high quality of the issuer." "CTC impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: investors with the quality of its management and its competitive position through an extensive roadshow," said Simon Noble, vice president of Morgan's Latin American Capital Markets desk. "The issue was quickly oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. , allowing an early launch at the tightest spread ever achieved by a Chilean issuer. Importantly, more than half the issue was placed with investors new to Chile." CTC is the largest telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. enterprise in Chile, providing local, domestic and international long distance telecommunication, cellular, and cable services, as well as other services such as paging and equipment sales. The company owns approximately 93% of all telephone lines in Chile and provides local telephone services to 92% of Chile's population. CTC is 43.6% owned by Telefonica Internacional S.A., a subsidiary of Telefonica de Espana, S.A. CONTACT: J. P. Morgan Press contact: Elizabeth Ross 212-648-9539 http://www.jpmorgan.com |
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