Colbún S.A., a power generation company based in Chile, announced the expiration of its cash tender offer for all of its 3.950% fixed-rate notes due in 2027. The offer, launched in early September, closed on September 9 at 5:00 p.m. New York time, with a total of $266.3mn in notes repurchased, representing 53.26% of the outstanding principal.
Unchanged repurchase terms with no extension
The terms of the offer remained as outlined in the offer document dated September 3, with no extensions or amendments. Colbún offered a purchase price of $1,000.50 per $1,000 in principal value, in line with prevailing market conditions for this type of operation. No guaranteed delivery notices were submitted before the deadline, indicating that all notes repurchased were tendered directly before expiration.
The company expects to settle validly tendered and not withdrawn notes on or around September 11. The payment will include the purchase price and accrued and unpaid interest up to the expiration date, in accordance with the offer terms. The process is being managed by Global Bondholder Services Corporation, acting as the tender and information agent.
A debt management strategy with international scope
This transaction is part of Colbún’s proactive debt management strategy aimed at optimising its liability structure. Although the offer was denominated in US dollars, it involved securities issued in international markets, reinforcing the company’s presence on North American financial platforms.
Under the conditions outlined in the offer documentation, Colbún reserves the right to amend or terminate the transaction at its sole discretion, subject to applicable laws. No regulatory authority, either in the United States or internationally, has approved or rejected the terms of the transaction.
No immediate regulatory implications
No prior approval was required from the United States Securities and Exchange Commission or other equivalent authorities. The company has not disclosed whether it will follow this transaction with a new bond issuance or targeted refinancing.
All remaining notes remain outstanding under their original contractual terms. Colbún has not announced any overall debt reduction targets at this time.
