Brazil holds one-day capped tender for numerous notes via new issue

By Susanna Moon

Chicago, Oct. 3 – The Federative Republic of Brazil is tendering for a maximum amount of a number of series of notes until noon ET on Oct. 3 for non-preferred tenders and 4 p.m. ET the same day for preferred tenders.

The maximum purchase amount in the offer will be set by Brazil, according to an announcement.

The offer is contingent on the pricing of bonds due 2028, with some of the proceeds to be used to fund the offer as well as call some or all of the issuer’s 5 7/8% global notes due March 2019.

The tender offer was set to begin at 7:15 a.m. ET on Oct. 3.

Settlement has been set for Oct. 10.

For the fixed price bonds, the purchase price for each $1,000 principal amount will be as follows:

• $1,763,202,000 of 5 7/8% global bonds due 2019 with a purchase price of $1,052.13;

• $772,848,000 of 8 7/8% global bonds due 2019 with a purchase price of $1,142.47; and

• $129,788,000 of 12¾% global bonds due 2020 with a purchase price of $1,247.13.

Pricing for the other series of notes covered by the offer will be set using a reference security plus a fixed spread for a hypothetical purchase price for each $1,000 principal amount as follows:

• $2,816,751,000 of 4 7/8% global bonds due 2021 with pricing to be set using the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 25 basis points for a hypothetical purchase price of $1,071.41;

• $85,557,000 of 8 7/8% global bonds due 2024 with pricing based on the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 139 bps for a hypothetical purchase price of $1,295.03;

• $1,074,392,000 of 8 7/8% global bonds due 2024 with pricing based on the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 144 bps for a hypothetical purchase price of $1,291.68;

• $927,559,000 of 8¾% global bonds due 2025 with pricing based on the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 161 bps for a hypothetical purchase price of $1,302.27;

• $2.5 billion of 6% global bonds due 2026 with pricing based on the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 207 bps for a hypothetical purchase price of $1,111.53;

• $1,349,641,000 of 10 1/8% global bonds due 2027 with pricing based on the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 186 bps for a hypothetical purchase price of $1,463.87; and

• $366,522,000 of 12¼% global bonds due 2030 with pricing based on the 2¼% U.S. Treasury note due Aug. 15, 2027 plus 255 bps for a hypothetical purchase price of $1,678.30.

The hypothetical prices were calculated using the price for the reference U.S. Treasury security at 4 p.m. ET on Oct. 2.

Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955), Itau BBA USA Securities, Inc. (888 770-4828, 212 710-6749, +81 80 2336 5400 or IBBA_Syndicate@correio.itau.com.br) or Santander Investment Securities Inc. (855 404-3636 or 212 940-1442) are the dealer managers.

The information agent is D.F. King & Co. (dfking.com/brazil).

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