Brazil's Energisa revises structure on bond issue, cutting maturity to seven years

By Reshmi Basu and Paul A. Harris

New York, June 27 - Brazilian utility company Energisa SA has revised the structure of its impending bond offering (/B+/BB-), according to a sellside source.

Energisa had originally sets its eyes on selling perpetual bonds up to $250 million. The tenor was then changed to 10 years. The sellside source noted that there were whispers of 9½% guidance on that issue late last week.

But once again the maturity has been reduced, this time to seven years for a deal that is expected to be slightly smaller than $250 million.

"Now you're hearing 10% for seven years, for a slightly smaller deal, reminiscent of what is going on in high yield," noted the source.

Energipe SA and Saelpa SA will issue the bonds while holding company Energisa will guarantee the offering.

Proceeds will be used to repay short-term debt.

Merrill Lynch is the lead manager.

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