Celpa Readies Debentures for Recovery Plan

Celpa Readies Debentures for Recovery Plan

Brazil Bonds Corporate & Sovereign Strategy

Brazilian utility Centrais Eletricas do Para (Celpa) plans to sell BRL650m ($337m) in convertible debentures as part of a bankruptcy recovery plan that also contemplates a 40% haircut on existing debt, it says. The 2027 bonds would come with a 15% coupon, and feature a grace period until December 2015. They would be mandatorily convertible into equity at Celpa’s discretion, though the utility does not give details of the conversion price. A meeting with creditors to discuss the plan is to be hel

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