CAP S.A. Announces Results of Offer to Purchase Any and All of its 7.375% Bonds due 2036
SANTIAGO, Chile, July 20, 2011 /PRNewswire/ -- CAP S.A. (BCS: CAP) announced today the results of 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 expired at 5:00 p.m. New York City time on July 19, 2011 (the "expiration date").
CAP has been advised by the depositary that, as of the expiration date of the offer, of the U.S.$200,000,000 in aggregate principal amount of the bonds outstanding, approximately U.S.$129,895,000 had been validly tendered and not withdrawn pursuant to the offer.
CAP has accepted for purchase, at the previously announced price of U.S.$1,117.33 per U.S.$1,000 principal amount, all bonds validly tendered and not validly withdrawn pursuant to the offer in the manner described in the offer to purchase (the "offer to purchase"), and a related letter of transmittal (the "letter of transmittal"), both dated July 8, 2011. The total cash payment to purchase the bonds is approximately U.S.$148.5 million. Payment of the purchase price and accrued and unpaid interest to, but excluding, the settlement date for the bonds accepted pursuant to the offer is expected to occur on July 22, 2011.
Citigroup Global Markets Inc. acted as the dealer manager for the offer. Global Bondholder Services Corporation served 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.
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