BlackRock Latin American Investment may sell up to $75 million six-year convertibles to yield 3.5%

By Rebecca Melvin

New York, July 7 - BlackRock Latin American Investment Trust plc is considering issuing up to $75 million of six-year convertible bonds, which were talked to yield 3.5%, according to a syndicate source.

Cenkos Securities plc is bookrunner for the bond issue, which is subject to shareholder approval at a general meeting of shareholders expected to be held in late August or early September.

The conversion price will be based on the investment fund's U.S. dollar net asset value on the penultimate business day before the general meeting, plus a conversion premium of 5% for the first three years, ratcheting up to 15% for the second three years.

Distribution will be mainly in Europe, and the issue will not be offered in the United States.

Proceeds of the bonds will be invested.

Shares of BlackRock Latin American have traded at an average discount of 3.9% since a Jan. 29 announcement of a tender offer for up to 7.5% of the shares, according to a news release.

Given current liquidity, rating of the shares and the proposed convertible bond issue, the fund's board of directors has decided not to implement the next tender offer, which would have taken place at the end of September, the release said.

London-based BlackRock Latin American Trust invests at least 80% of total assets in Latin American equity and debt securities. It's listed on the London Stock Exchange under symbol BRLA.

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