Brazil's CVRD completes $6 billion loan as final piece of refinancing

By Reshmi Basu

New York, Dec, 22 - Brazilian mining company Companhia Vale do Rio Doce (CVRD) said it closed the books for a pre-export finance transaction of $6 billion.

The deal is comprised of a $5 billion five-year tranche, which will bear a rate of Libor plus 62.5 basis points. The deal also included a $1 billion seven-year tranche that will carry a rate of Libor plus 75 bps.

The syndicate is made up of by 30 banks.

Counting this transaction, the firm has completed 84% of the take out of a $14.6 billion two-year bridge loan.

On Nov 16, the firm priced an upsized $3.75 billion two-part note transaction (Baa3/BBB). CVRD priced $1.25 billion 6¼% 10-year notes at a 168 basis point spread to Treasuries. The company also priced a $2.5 billion tranche of 6 7/8% 30-year notes at a 225 basis point spread to Treasuries. The 30-year notes came at a dollar price of 98.478 to yield 6.997%.

The second transaction took place on Dec. 20 in the Brazilian market. CVRD sold R$ 5.5 billion non-convertible debentures. The deal was composed of two series, with four and seven-year tenors.

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