By Christine Van Dusen
Atlanta, Feb. 6 – Brazil’s Vale Overseas Ltd. priced a $1 billion add-on to its 6¼% notes due Aug. 10, 2026 (Ba3/BBB-/BBB) at 107.793 to yield 5.2% on Monday, a market source said.
The notes were talked in the 5.45% area.
BB Securities, Bradesco BBI, JPMorgan, MUFG and Santander were the bookrunners for the Securities and Exchange Commission-registered deal.
The proceeds will be used to refinance the company’s 4 3/8% euro-denominated notes due 2018, and for general corporate purposes.
Vale originally sold $1 billion of the note at par on Aug. 3, 2016.
Vale is a Rio de Janeiro-based producer of iron ore and nickel.
| Issuer: | Vale Overseas Ltd.
|
| Guarantor: | Vale SA
|
| Amount: | $1 billion
|
| Maturity: | Aug. 10, 2026
|
| Description: | Senior notes
|
| Bookrunners: | BB Securities, Bradesco BBI, JPMorgan, MUFG, Santander
|
| Co-managers: | Mizuho, SMBC Nikko
|
| Coupon: | 6¼%
|
| Price: | 107.793
|
| Yield: | 5.2%
|
| Spread: | Treasuries plus 278.3 bps
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody’s: Ba3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | 5.45% area
|
| Original issue: | $1 billion priced at par on Aug. 3, 2016
|
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