Cencosud makes $500m bond issuance

The bonds are 5.750% senior unsecured notes due 2036.

Chilean law firm Carey advised the representatives of the initial purchasers in connection with the offering, and the dealer managers in connection with the concurrent cash tender offer to purchase all of Cencosud’s outstanding international notes maturing in 2027.

The transaction is noteworthy for combining an international bond offering with a concurrent tender offer, as part of a strategy primarily aimed at refinancing the notes maturing in July 2027, extending the company’s maturity profile and strengthening its financial position, Carey said.

The transaction generated significant demand from institutional investors, reflecting market confidence in Cencosud’s credit profile and its access to the international capital markets. From a legal perspective, the engagement was characterized by the short timeframe in which the transaction was structured and executed, requiring an efficient and coordinated review of complex documentation typical of international capital markets transactions.

Carey’s team advised the investors across all aspects of the transaction, including capital markets, contractual and tax matters, as well as a comprehensive review of the Chilean law aspects of the offering memorandum. This involved the coordinated participation of multiple legal teams and an integrated, high-level technical effort, drawing on the team’s extensive experience in similar transactions, and enabling the delivery of comprehensive and timely advice in a transaction of significant complexity.

Carey’s team was led by partners Fernando Noriega, Cristián Figueroa and Manuel José Garcés, with associates Angélica De la Carrera, Francisco Jiménez, Magdalena Menchaca and Javiera Leal.

Davis Polk & Wardwell acted as international counsel to the underwriters and Milbank acted as international counsel to the issuer. Morales & Besa acted as local counsel to the issuer.