By Reshmi Basu
New York, Jan. 19 - ISA Capital do Brasil SA placed $554 million in a two-part offering of senior notes, according to a market source.
The issuer sold $200 million of five-year notes at par to yield 7 7/8%. The notes will be non-callable for three years.
The second tranche was comprised of $354 million in 10-year notes that priced at par to yield 8.80%. The notes have a make-whole call at Treasures plus 60 basis points.
Proceeds from the sale will be used to repay a $554 million bridge loan entered into by ISA Capital for the acquisition of Companhia de Transmissao de Energia Eletrica Paulista (CTEEP) in two phases during 2006 and early 2007, according to a ratings statement by Fitch Ratings.
ISA Capital is a holding company that owns 89.40% of the common stock of CTEEP, which is Brazil's second largest electricity transmission company.
ABN Amro and JP Morgan were joint bookrunners for the Rule 144A and Regulation S transaction.
Issuer: ISA Capital do Brasil SA
Issue: Two-tranche offering of notes
Total amount: $554 million
Pricing date: Jan. 19
Settlement date: Jan. 26
Joint bookrunners: ABN Amro, JP Morgan
Distribution: Rule 144A/Regulation S
Ratings: Standard & Poor's: BB-
| Fitch: BB
|
| Five-year tranche:
|
| Amount: | $200 million
|
| Issue: | Senior notes
|
| Maturity: | Jan. 30, 2012
|
| Coupon: | 7 7/8%
|
| Issue price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | Treasuries plus 309.6 basis points
|
| Call option: | Non-callable for three years; callable from Jan. 30, 2010 at 103.9375, from Jan. 30, 2011 at 101.96875
|
|
|
| 10-year tranche:
|
| Amount: | $354 million
|
| Issue: | Senior notes
|
| Maturity: | Jan. 30, 2017
|
| Coupon: | 8.80%
|
| Issue price: | Par
|
| Yield: | 8.80%
|
| Spread: | Treasuries plus 402.3 basis points
|
| Make-whole call: | Treasuries plus 60 basis points
|
|
|
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