By Reshmi Basu
New York, June 21 - Special-purpose vehicle Voto-Votorantim Overseas Trading Operations IV Ltd. sold an upsized offering of $400 million of 15-year bonds (/BBB-/BBB) at par to yield 7¾%, according to a market source.
The deal was increased from $300 million
Votorantim Participacoes (VPAR) will guarantee up to 100% of the principal amount. Its subsidiaries Votorantim Celulose e Papel and Cimento Rio Branco will each guarantee 50% of the amount.
Credit Suisse First Boston ran the Rule 144A/Regulation S notes offering.
The issue will carry political risk protection provided through a letter of credit issued by CSFB, via its Cayman Island branch.
The protection will protect against a currency inconvertibility/non-transfer event and will cover three interest payments or 18 months.
Votorantim Participacoes SA, based in Sao Paulo, is a Brazilian conglomerate.
| Issuer: | Voto-Votorantim Overseas Trading Operations IV
|
| Amount: | $400 million
|
| Guarantors: | Votorantim Participacoes, Votorantim Celulose e Papel, Cimento Rio Branco
|
| Maturity: | June 24, 2020
|
| Coupon: | 7¾%
|
| Issue price: | Par
|
| Yield: | 7¾%
|
| Spread: | 369 basis points more than Treasuries
|
| Pricing date: | June 21
|
| Settlement date: | June 24
|
| Bookrunner: | Credit Suisse First Boston
|
| Ratings: | Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
