Brazil's Energisa sets price guidance for seven-year bond at 10¾%-11%

By Reshmi Basu

New York, July 11 - Brazilian utility company Energisa SA set price guidance for a dollar-denominated offering of seven-year fixed-rate bonds at 10¾% to 11%, according to a market source.

Books will close at the end of Tuesday's session. Pricing is expected to take place during Wednesday's New York session.

On May 11, Prospect News reported that Energisa had planned to sell up to $250 million in perpetual bonds. But as interest rate fears eroded the market's appetite for risk, the company changed the tenor to 10 years but saw no demand. Then at the end of June, the maturity was once again changed to seven years.

According to a bank source, the deal is recommended for very aggressive clients in search of double-digit yield.

Energipe SA and Saelpa SA will issue the bonds while holding company Energisa will guarantee the offering.

Proceeds will be used to repay short-term debt.

Merrill Lynch is the lead manager.

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