Tanner successfully completes c.US$72 million bond issueOctober 23, 2012
- The placement of UF1.5 million (US$71.5 million) was significantly oversubscribed (1.83 times) with orders totaling UF 2.75 million.
- The transaction was carried out through the second Dutch auction held on the Chilean stock exchange with an issue of 5Y series N bonds.
Tanner Servicios Financieros S.A. successfully completed a UF1.5 million (US$72 million) bond issue this morning.
The transaction was headed by BBVA as financial advisor and placement agent. The series of bonds was assigned an A rating by Humphreys and Fitch.
The UF1.5 million 5Y series N issue, with two capital payments in the final year, was placed at a rate of 4.90%, indicating a spread of 257 points vs. the benchmark rate.
The funds collected through this transaction will be used to repay debt and finance placements.
Mario Duque, Head of Credit at BBVA Chile, stated that, "this transaction confirms the appetite of institutional investors on the capital markets for medium and long term structured corporate bonds". As a reflection of this, the issue was significantly oversubscribed and a great many different investors also participated, such as pension fund managers (AFPs), insurance companies, mutual funds, brokers, banks and family offices.
In the opinion of BBVA, the success of the transaction was based on Tanner's financial strength, evidenced in its leadership position and experience in different business areas, a proven track record of creating value and the design of the issue structure, which was in line with current market needs.