By Christine Van Dusen
Atlanta, Sept. 8 - Brazil's Vale Overseas Ltd. priced a combined $1.75 billion of notes due 2020 and 2039 on Wednesday, a market source said.
The company sold $1 billion 4 5/8% notes due September 2020 (Baa2/BBB+/BBB+) at 99.03 to yield Treasuries plus 210 basis points.
Vale also priced a $750 million reopening of its 6 7/8% notes due Nov. 10, 2039 (Baa2/BBB+/BBB+) at 110.872 to yield 6.074%, or Treasuries plus 235 bps, a market source said.
Credit Suisse and JPMorgan were the bookrunners for the Securities and Exchange Commission-registered deal.
The 2020 notes include a make-whole call at Treasuries plus 30 bps.
The 2039 notes - which include a make-whole call at Treasuries plus 40 bps - will be consolidated to form a single series with the company's original $1 billion 6 7/8% notes due 2039 issued on Nov. 10, 2009.
Proceeds from both issues will be used for general corporate purposes, including funding capital expenditures, managing the currency and maturity profile of the company's liabilities and potentially making acquisitions, according to a filing with the SEC.
Vale Overseas issues debt securities as a Rio de Janeiro-based subsidiary of Vale SA, a metals and mining company.
| Issuer: | Vale Overseas Ltd.
|
| Amount: | $1.75 billion
|
| Description: | Notes
|
| Bookrunners: | Credit Suisse, JPMorgan
|
| Co-managers: | BB Securities Ltd., Bradesco BBI
|
| Trade date: | Sept. 8
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Distribution: | Securities and Exchange Commission-registered
|
|
|
| Notes due 2020
|
| Amount: | $1 billion
|
| Maturity: | September 2020
|
| Coupon: | 4 5/8%
|
| Price: | 99.03
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps
|
|
|
| Notes due 2039
|
| Amount: | $750 million reopening
|
| Maturity: | Nov. 10, 2039
|
| Coupon: | 6 7/8%
|
| Price: | 110.872
|
| Yield: | 6.074%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps
|
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