Emerging markets sell-off sidelines Brazil's Vicunha $500 million perpetual

By Paul A. Harris

St. Louis, Oct. 7 - Last week's sell-off in the emerging markets prompted Brazil's Vicunha Acos SA/National Steel SA to place its maximum $500 million offering of perpetual senior secured notes on hold, a market source told Prospect News on Friday.

Earlier in the week the note had been talked at the 9 7/8% area.

The roadshow had been scheduled to wrap up on Oct. 6.

Credit Suisse First Boston and Deutsche Bank Securities are joint bookrunners for the Regulation S-only offering.

Standard & Poor's is expected to assign its B+ rating to the notes. Fitch is expected to rate the notes at BB-.

Proceeds will be used to refinance debt.

National Steel is a holding company that is 100% indirectly controlled by Brazil's Steinbruch family and whose sole asset consists of 100% of the redeemable preferred shares of Vicunha Acos (Acos). Acos, in turn, is a holding company owning 100% of Vicunha Siderurgia SA, a holding company that owns a 42.74% controlling interest in Brazilian steel producer CSN.

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