By Reshmi Basu
New York, Dec. 15 - Banco BMG SA sold $300 million of 10-year senior unsecured notes (Ba3/B+) at 98.045 with a 9.15% coupon to yield 9½%, according to a market source.
The issue is expected to carry an average life of eight years.
Additionally, the notes have a covenant. If Banco BMG president Flavio Pentagna Guimaraes or his family lose control of the bank, BMG will repurchase the notes for cash at a price of 101.
Morgan Stanley was the bookrunner for the Rule 144A and Regulation S transaction.
Proceeds will be used to fund growth of the bank's credit portfolio and for general corporate purposes.
BMG has headquarters in Belo Horizonte, Brazil.
| Issuer: | Banco BMG SA
|
| Amount: | $300 million
|
| Issue: | Senior amortizing notes
|
| Maturity: | Jan. 15, 2016
|
| Coupon: | 9.15%
|
| Issue price: | 98.045
|
| Yield: | 9½%
|
| Amortization schedule: | Amortizations on Jan. 15 of 2012, 2013, 2014, 2015 and 2016
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 22
|
| Bookrunner: | Morgan Stanley
|
| Expected ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
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