By Paul A. Harris
St. Louis, Nov. 16 - Vale Overseas Ltd., a wholly owned subsidiary of Brazilian mining company Companhia Vale do Rio Doce (CVRD), priced a massively upsized $3.75 billion two-part note transaction (Baa3/BBB) on Thursday, according to market sources.
CVRD priced $1.25 billion 6¼% 10-year notes at a 168 basis point spread to Treasuries. Price talk was Treasuries plus 170 basis points. The 10-year notes came at a 99.267 dollar price to yield 6.346%.
The company also priced a $2.5 billion tranche of 6 7/8% 30-year notes at a 225 basis point spread to Treasuries, on top of price talk. The 30-year notes came at a dollar price of 98.478 to yield 6.997%.
Credit Suisse, UBS, Santander and ABN Amro led the Securities and Exchange Commission-registered offering.
Proceeds will be used to refinance debt.
The overall issue size was increased from $2.5 billion.
CVRD has headquarters in Rio de Janeiro, Brazil.
| Issuer: | Vale Overseas Ltd./Companhia Vale do Rio Doce (CVRD)
|
| Amount: | $3.75 billion (increased from $2.5 billion)
|
| Bookrunnners: | Credit Suisse, UBS, Santander, ABN Amro
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Jan. 23, 2017
|
| Coupon: | 6¼%
|
| Price: | 99.267
|
| Yield: | 6.346%
|
| Spread: | 168 bps
|
| Price talk: | Treasuries plus 170 bps
|
|
|
| 30-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Nov. 21, 2036
|
| Coupon: | 6 7/8%
|
| Price: | 98.478
|
| Yield: | 6.997%
|
| Spread: | 225 bps
|
| Price talk: | Treasuries plus 225 bps
|
© 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.
