ISA Wraps Brasil Bond Tender

ISA Capital do Brasil, the holdco for the Colombian transmission company’s 89% ownership in Sao Paulo utility CTEEP, is set to repurchase $324m of its $354m in 8.8% 2017 bonds, following a tender offer, it says. Holders agree to swap the bonds for $1,082.50 per $1,000.00 principal, or $1,117.50 per $1,000.00 before February 24, and to waive a set of covenants on the bond issue. HSBC is managing the process. ISA Capital plans to fund the buyback through new debt issuance in Brazil’s domestic markets, according to a company official, with a deal to be announced as soon as this week. The 2017 bonds were originally sold in January 2007 as part of a 2-tranche sale through ABN and JPMorgan that also included $200m in 7.875% 2012 bonds.