Energisa Talks Mid-9s

Energisa Talks Mid-9s

Brazil Structured Finance

Brazil’s Energisa, shopping a NC5 perp this week, has set 9.5% area yield guidance for the bond, expected to price as soon as today at $200m. The level includes a premium for an interest deferral option included in the bond, investors say. One potential buyer estimates that the electric distribution holdco would pay 100bp less for a more traditional perp. The structure allows coupons to be deferred at any time in exchange for a 100bp step-up and the halting of dividend payments on equity. C

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