CMPC Targets $250m with Relationships

Chilean pulp and paper company CMPC has launched a 5-year bullet loan of up to $250m to a group of relationship banks. The deal offers Libor plus 55bp, a seemingly thin margin given the cost of funding for banks today, though considerably wider than what the Chilean borrower might have achieved a year ago. Bankers away from the deal speculate CMPC will succeed in raising the funds, though it may have to resort to leaning on banks. The deal is heard underwritten for $150m by leads Santander, BBVA and Bank of Tokyo Mitsubishi. Another $100m is being targeted at other relationship banks. EDC is heard to have taken a $35m MLA ticket.