Brazil's CVRD gives guidance on $2.5 billion: 10-year notes 170 bps, 30-year notes 225 bps spreads to Treasuries

By Paul A. Harris

St. Louis, Nov. 15 - Vale Overseas Ltd., a wholly owned subsidiary of Brazilian mining company Companhia Vale do Rio Doce (CVRD), set guidance for its $2.5 billion note offering (expected ratings Baa3/BBB), which is being sold in tranches of 10-year and 30-year notes, a market source told Prospect News on Wednesday.

The 10-year notes come with guidance of Treasuries plus 170 basis points. Meanwhile the 30-year notes come with guidance of Treasuries plus 225 bps.

The tranche sizes remain to be determined.

Books are expected to close on Thursday.

Credit Suisse, UBS, Santander and ABN Amro are leading the Securities and Exchange Commission-registered offering.

Proceeds will be used to refinance debt.

CVRD has headquarters in Rio de Janeiro, Brazil.

Previously, the issuer raised $1 billion in the dollar-denominated bond market on Jan. 5, 2006 with the issue of a 6¼% 10-year global bond (Baa3/BBB), which priced at 99.97 to yield 6.254%.

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