By Reshmi Basu
New York, April 21 - Braskem SA sold a $200 million offering in perpetual bonds (/BB/BB-) at par to yield 9%, according to a market source.
The deal priced at the wide end of price guidance, which was set at 8¾% to 9%.
The issue will be structured as senior unsecured fixed-rate bonds, according to a company press release. Also, the bonds will be callable at par for five years in whole or in part with a minimum $100 million remaining after call.
Proceeds from the sale will be used for general corporate purposes, including working capital and for financing the acquisition of certain common and preferred shares of Politeno Indústria e Comércio SA.
JP Morgan was managing the Rule 144A and Regulation S sale.
The Sao Paulo, Brazil-based company is a privately owned petrochemical company.
| Issuer: | Braskem SA
|
| Amount: | $200 million
|
| Issue: | Senior fixed-rate bonds
|
| Maturity: | Perpetual
|
| Coupon: | 9%
|
| Issue price: | Par
|
| Yield: | 9%
|
| Call option: | Callable at par on April 28, 2011
|
| Pricing date: | April 21
|
| Settlement date: | April 28
|
| Bookrunner: | JP Morgan
|
| Ratings: | Standard & Poor's: BB
|
| Fitch: BB-
|
| Price guidance: | 8¾% to 9%
|
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