Banco do Brasil tenders for up to US$600m of bonds

martes 10 de noviembre de 2015 17:44 GYT

By Paul Kilby

NEW YORK, Nov 10 (IFR) - Banco do Brasil has launched a tender to buy back up to US$600m in perps and senior 2022 notes.

The state-controlled bank is targeting its 9% and 9.25% subordinated perpetual notes as well as 3.875% bonds due 2022.

For each US$1,000 in principal amount, holders who tender by the early bird tender date of November 24 will respectively receive US$752.50, US$777.50 and US$872.50, including a US$30 early tender premium.

Thereafter, but before the final expiration on December 9, buyback prices drop to US$722.50, US$747.50 and US$842.50.

The issuer has capped the tender on each of the perpetuals at US$300m, while putting a ceiling of US$100m for the 2022s. It is also prioritizing the 9% perps first, followed by the 9.25% perps and then the 2022s.

BB Securities, Citigroup and JP Morgan are acting as dealer managers on the tender. (Reporting by Paul Kilby; Editing by Natalie Harrison)