Wednesday, 8 April 2009

New Issuance -- Telemar, Part of Brazil's Newly-Created Phone Giant, Mulls Selling 2019 Bonds

The following is information on the planned sale of dollar bonds by Telemar Norte Leste, on behalf of Oi, the telecom group created with the merger of Telemar and Brasil Telecom under the sponsorship of President Luiz Inacio Lula da Silva. The sale will likely take place by the end of next week, according to anonymous sources.

The sale is part of a plan under which the company, in this case Telemar, will refinance debt incurred during the acquisition process of Brasil Telecom. The takeover transaction was valued at about 5 billion reais at the time and a greater part of it was financed by state penson funds and the BNDES development bank.

Issuer: Telemar Norte Leste SA
Ratings: Baa3 (stable)/BBB- (stable) (Moody's/Fitch)
Format: 144a/RegS Senior Unsecured Notes
Size: Dollar-Denominated Benchmark (At Least $500 Million)
Tenor: Ten Years (Due 2019)
Bookrunners: Citigroup Inc. / Banco Itaú BBA SA / Banco Santander SA / BB Securities / Banco Bradesco BBI
Use of Proceeds: Debt Refinancing, General Corporate Purposes
Roadshow: April 13-16

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