CAP S.A. Announces Pricing of its Tender Offer to Purchase Any and All of its 7.375% Bonds due 2036

SANTIAGO, Chile, July 19, 2011 /PRNewswire/ -- CAP S.A. (BCS: CAP) announced today the purchase price for its previously announced tender offer (the "offer") to purchase for cash any and all of its 7.375% Bonds due 2036 (the "bonds").  

The offer is being made pursuant to an offer to purchase (the "offer to purchase"), and a related letter of transmittal (the "letter of transmittal"), both dated July 8, 2011, which set forth in more detail the terms and conditions of the offer.

As previously announced, the offer is scheduled to expire at 5:00 p.m., New York City time, today, July 19, 2011, unless extended or earlier terminated with respect to the offer.

The table below sets forth the relevant pricing information for the bonds.  Terms used but not defined in this table have the meaning given to them in the offer to purchase.

The reference yield and the purchase price were calculated by the dealer manager as of 2:00 p.m., New York City time, today, July 19, 2011, in the manner described in the offer to purchase.  In addition to the purchase price, holders whose bonds are purchased in the offer will receive accrued and unpaid interest from the last interest payment date up to, but not including, the settlement date.  The settlement date for the offer shall occur promptly after the expiration date, and CAP currently anticipates that the settlement date will be July 22, 2011.

CAP has retained Citigroup Global Markets Inc. to serve as the dealer manager for the offer.  Global Bondholder Services Corporation has been retained to serve as the depositary and information agent.  

For additional information regarding the terms of the offer, please contact Citigroup Global Markets Inc. at +1 (800) 558-3745 (toll free within U.S.) or +1 (212) 723-6108 (collect).  Requests for documents and questions regarding the tender of bonds may be directed to Global Bondholder Services Corporation at +1 (866) 470-3900 (toll free within U.S.) or +1 (212) 430-3774 (collect).

This press release is neither an offer to purchase nor a solicitation to buy these bonds nor is it a solicitation for acceptance of any offer.  CAP is making the offer only by, and pursuant to the terms of, the offer to purchase and the related letter of transmittal.  The offer is not being made to (nor will tenders of bonds be accepted from or on behalf of) holders of bonds in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.  This announcement must be read in conjunction with the offer to purchase and the related letter of transmittal.

CAP is an integrated ferrous metals company, composed of the largest iron mining company and the largest producer of steel in Chile.  CAP exports iron pellets and other iron ore products, primarily to Asia, and CAP believes that it owns mining rights to a substantial portion of Chile's iron ore resources.  CAP also supplies both flat and long steel products, principally to Chilean customers, and has a greater than 50% market share in Chile's domestic steel market, based on historical sales volumes.

Certain statements in this release, including without limitation the anticipated timing and completion of the offer, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances.  Actual results may differ materially from those included in these statements due to a variety of factors, including without limitation the level of interest in and the actual completion of the proposed offer.

SOURCE CAP S.A.