By Reshmi Basu
New York, Oct. 3 - Brazil's Banco Votorantim priced a $200 million offering of 10-year bonds (expected ratings Ba3/BB-) at 99.48 with a 6 7/8% coupon to yield 7%, according to a market source.
The notes will pay a fixed rate for the first five years and will contain a one-time par call at year five. If the notes are not called, the coupon steps up to 150% of the original spread; that spread will be calculated against the yield that the five-year U.S. Treasury pays at the time the step-up goes into effect.
Deutsche Bank Securities was the bookrunner for Rule 144A/Regulation S offering.
The issuer is a financial institution with headquarters in Sao Paulo, Brazil.
| Issuer: | Banco Votorantim
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| Amount: | $200 million
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| Issue: | Bonds
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| Maturity: | Oct. 14, 2015
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| Coupon: | 6 7/8%
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| Issue price: | 99.48
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| Yield: | 7%
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| Call option: | Callable on Oct. 15, 2010 at par. If not called, steps up to 150% of original spread
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 14
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| Bookrunner: | Deutsche Bank Securities
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