Brazil's CSN launches upsized $500 million perpetual preferreds at 9½%

By Reshmi Basu and Paul A. Harris

New York, July 6 - Brazilian steel maker Companhia Siderurgica Nacional SA launched a hugely upsized offering of $500 million in perpetual preferred stock (B1/BB-/BB-) with talk at 9½%, according to a market source.

The issue was more than tripled from the originally planned amount of $150 million while price talk was lowered from 9 5/8%.

Credit Suisse First Boston and Deutsche Bank Securities are joint bookrunners for the Rule 144A/Regulation S offering

The proposed preferreds are non-callable for five years. After that they will be callable quarterly at par. There is no step-up provision.

The issue is 10 times oversubscribed, said sources.

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