By Reshmi Basu
New York, April 3 - The Federative Republic of Brazil reopened its 6% fixed-rate bonds (Ba2/BB/BB) due January 2017 to add $500 million, according to a term sheet filed with the Securities and Exchange Commission.
The reopening priced at 100.796 to yield 122 basis points more than Treasuries, or a yield of 5.888%.
Merrill Lynch and Morgan Stanley were bookrunners for the offering of SEC-registered bonds. Banco Itau, Europa SA and BB Securities were co-managers.
In November 2006, the country sold $1.5 billion of the bonds at 99.125 to yield a spread of 159 bps over Treasuries, or 6.249%. With the additional bonds, the total size of the deal stands at $2 billion.
Furthermore, Brazil said it reserves the right to sell an additional $25 million to Asian investors on Wednesday.
| Issuer: | Federative Republic of Brazil
|
| Issue: | Reopening of 2017 global bonds
|
| Amount: | $500 million
|
| Issue: | Global bonds
|
| Maturity: | Jan. 17, 2017
|
| Coupon: | 6%
|
| Issue price: | 100.796
|
| Yield: | 5.888%
|
| Spread: | 122 basis points more than Treasuries
|
| Bookrunners: | Merrill Lynch, Morgan Stanley
|
| Co-managers: | Banco Itau, Europa SA, BB Securities
|
| Pricing date: | April 3
|
| Settlement date: | April 11
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB
|
| Distribution | SEC registered
|
| Total amount: | $2 billion
|
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