Cruzeiro Buyback Fails To Meet Target

Cruzeiro Buyback Fails To Meet Target

Brazil Corporate & Sovereign Strategy

The credit guarantee fund administering a tender for Brazil’s Banco Cruzeiro do Sul has failed to reach the minimum 90% acceptance level for a $1.58bn bond buyback on behalf of the troubled lender, it says. According to a source familiar with the process, Fundo Garantidor de Credito (FGC) received consent from 75% of bondholders of its 2015 and 2016 notes, paying 8.500% and 8.250% respectively, by an early deadline of August 28 – a level it nevertheless describes as “meeting expectations.”

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