By Cristal Cody
Chicago, Feb. 29 – Raizen Fuels Finance SA priced a two-part offering of green notes (BBB/BBB) on Wednesday, according to a market source.
Raizen SA and Raizen Energia SA will guarantee the notes.
The Brazilian energy company priced $1 billion of 6.45% notes due 2034 at Treasuries plus 220 basis points. Initial talk had the tranche coming in the mid-200s.
The company also priced a series half the size, $500 million of 6.95% notes due 2054 at Treasuries plus 265 bps. Initial talk was in the low 300 bps area.
Itau BBA USA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were bookrunners.
The proceeds will be used to finance or refinance eligible green assets and projects, and liability management, including repurchasing part of its 2027 notes and for general corporate purposes, according to Fitch Ratings.
Raizen is based in Rio de Janeiro.
| Issuer: | Raizen Fuels Finance SA
|
| Guarantors: | Raizen SA and Raizen Energia SA
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| Amount: | $1.5 billion
|
| Issue: | Green notes
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| Bookrunners: | Itau BBA USA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 28
|
| Ratings: | S&P: BBB
|
| Fitch: BBB
|
|
|
| Notes due 2034
|
| Amount: | $1 billion
|
| Maturity: | March 5, 2034
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| Coupon: | 6.45%
|
| Spread: | Treasuries plus 220 bps
|
| Price talk: | Treasuries plus mid-200 bp
|
|
|
| Notes due 2054
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| Amount: | $500 million
|
| Maturity: | March 5, 2054
|
| Coupon: | 6.95%
|
| Spread: | Treasuries plus 265 bps
|
| Price talk: | Treasuries plus low 300 bps area
|
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