Brazilian Completes Bond, Meets Convert Buyers

Brazilian commercial and light vehicle parts producer Iochpe-Maxion has finalized the sale of BRL1.24bn ($617m) in domestic bonds, according to Anbima, and was due to begin marketing a separate convertible bond sale at the end of last week. The completed 2022 bond pays the DI+3.25%, the limit it had set prior to the transaction, and amortizes in equal annual parts beginning in 2016. Proceeds are for repaying debt. Itau, Banco do Brasil and Banco Votorantim managed the transaction, done under the rule 476 restricted format. Iochpe-Maxion is also preparing a BRL320m transaction for the wider-distribution rule 400 market. It was scheduled to start a roadshow March 28, and estimated pricing by the end of April, according to a prospectus. The 2018 convertible debenture pays up to 100% of the DI, and would be convertible at BRL30.30, or 33 shares per debenture, at any time at the holder’s discretion. The issuer’s shares closed at BRL26.55 Thursday. Itau and Banco Fator are managing. Iochpe-Maxion is rated A on a national scale.