Odebrecht sells dual trancher to fund buyback

18 Apr 2013

Brazilian conglomerate Odebrecht closed a dual tranche deal in dollars and Brazilian real on Wednesday. Its engineering arm Constutora Noberto Odebrecht (CNO) will use the proceeds to fund a buyback, which is expected to improve the maturity profile and average cost of the company’s debt.

The bookrunners priced a $550m 12 year tranche at 4.375% and a R$550m ($275m) five year bond at 8.25%, well inside initial guidance on both sections.

"It’s a regular issuer with a clear curve and the new bonds were in line with where it’s outstanding bonds trade," said a ...

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