Brazil's Cemat/Celpa $100 million units initial guidance at 8½% area

By Paul A. Harris

St. Louis, Feb. 1 - A pending $100 million offering of units from Brazilian utilities Centrais Electricas Matogrossenses SA (Cemat) and Centrais Eletricas do Para SA (Celpa) comes with initial guidance in the 8½% area, according to a market source.

The units will be comprised of $50 million each of six-year amortizing unsecured senior notes (B-) from both issuers.

An investor roadshow is underway and is expected to conclude mid to late in the week of Feb. 6, possibly pricing on Feb. 10.

Unibanco Securities and Merrill Lynch are leading the Rule 144A and Regulation S transaction.

The notes, which will not trade separately, have equal amortizations on fourth, fifth and sixth years.

Proceeds will be used to improve both companies' profiles, according to the source.

Cemat serves the state of Mato Gross, while Celpa serves entire state of Para in Brazil.

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