Cencosud Placed a US$ 650 Million International Bond, Achieving the Lowest Risk Premium in Its History

• Issue was over-subscribed by 5x with demand reaching US$ 3.2 billion.
• The funds will be used to prepay the senior notes due 2025 and other debt, improving the Company’s maturity profile.

SANTIAGO, Chile–(BUSINESS WIRE)–Cencosud S.A. placed a US$ 650 million 7-year international bond at a rate of 5.95%, with initial demand exceeding US$ 3.2 billion. The operation received 230 orders and funds will be used for prepaying an international bond and the debt associated with the acquisition of The Fresh Market in the United States.

Specifically, this transaction will allow Cencosud to pay in full the outstanding principal amount of US$ 524 million of the senior notes due 2025 and prepay other financing of US$ 175 million.

“We are very pleased with the market response to this transaction, which achieved the lowest risk premium in Cencosud’s history and saw demand several times the amount placed. It is an important sign of confidence in the Company’s strategy,” said Rodrigo Larraín, CEO of Cencosud.

Andrés Neely, Cencosud’s CFO, added that “this refinancing will allow the Company to improve its liquidity and debt maturity profile, and thus continue to strengthen its financial position as it executes its business plans.”

The Notes were rated Baa3 by Moody’s and BBB by Fitch Ratings.

Contacts

Beatriz Monreal

beatriz.monreal@cencosud.cl