Chile's Enersis S.A. offers $800 million of securities in the Yankee market through J.P. Morgan.NEW YORK--(BUSINESS WIRE)--Nov. 21, 1996--Enersis S.A., the largest privately owned electricity company in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , today issued $800 million of notes through lead manager J.P. Morgan. The issue, Enersis's first ever international bond issue and the largest ever for a Chilean issuer, was priced in three tranches: US$150 million of 30 year notes with a 7-year put option, US$300 million of 10 year notes, and US$350 million of 20 year notes. The notes, due December 1, 2026, December 1, 2006, and December 1, 2016, were priced at 99.810%, 99.742%, and 99.472%, to yield 6.634%, 6.936%, and 7.451%, respectively. The spread on each tranche, 61, 82, and 100 basis points over the respective U.S. Treasury securities U.S. Treasury securities Interest-bearing obligations if the U.S. government issued by the U.S. Department of the Treasury as a means of borrowing money to meet government expenditures not covered by tax revenues. , was the tightest ever for a Latin American issuer. In addition, the 20 year maturity and the 30 put 7 year structure were used for the first time by a Chilean issuer. The issue is rated Baa1 by Moody's Investor Service, A- by Standard & Poor's Corporation, and A- by Duff & Phelps Credit Rating Co. Juan Dominguez Juan Dominguez (born May 18, 1980 in Ensanchez Ramirez, Dominican Republic) is a former Major League pitcher. He played for the Texas Rangers for parts of three seasons between 2003 and 2005. , chief financial officer of Enersis, said: "This transaction achieves very attractive long-term financing Long-term financing Liabilities repayable in more than one year plus equity. terms for Enersis, and sets the stage for other Chilean corporates wishing to access the international markets." "The issue was notable for its creative structure and for setting a new benchmark for Chilean debt issues across the yield curve, reflecting the continued growth of investor interest in Chile and the high quality of the issuer," commented Carl Ingham, vice president of J.P. Morgan's Santiago office. "Enersis impressed investors with the quality of its management and its ability to maximize efficiency in the businesses they operate," said Simon Noble, vice president of Morgan's Latin American Capital Markets desk. "Despite a week crowded with new issues and the size of this transaction the deal was 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 us to launch the bonds at the tightest spread ever achieved by a Chilean issuer across all tranches. Importantly, more than half the issue was placed with investors new to Chile." Co-managers for the deal were Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. and Salomon Brothers. Enersis is a holding company whose subsidiaries are primarily engaged in the generation, distribution, and transmission of electricity in Chile, Argentina, and Peru. With more than 5.2 million customers, Enersis distributes electricity in Chile through Chilectra and Rio Maipo, in Argentina through Edesur, and in Peru through Edelnor. On November 20, 1996, Enersis won the bid to acquire CERJ, an electricity distribution company in Rio de Janeiro Rio de Janeiro, city, Brazil Rio de Janeiro (rē`ō də zhänā`rō, Port. rē`  thĭ zhənĕē`r , Brazil, with 1.2 million customers. In addition, Enersis holds a controlling interest controlling interestThe ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Endesa, the largest electricity generation company in Chile, with generation assets in Argentina and Peru. Enersis's landmark transaction builds on J.P. Morgan's success leading SEC-registered transactions for Chilean borrowers this year. The firm led the first ever Chilean 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 for Celulosa Arauco in December 1995 and has led US$1.6 billion out of a total of US$2.6 billion of public deals done from Chile since then. CONTACT: J.P. Morgan & Co. Inc. Press contact: Elizabeth Ross, 212/648-9539 http://www.jpmorgan.com |
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