Energisa Readies Perp Buyback

Brazil’s Energisa has received board approval to move ahead with a repurchase of its perpetual bonds, it says. The Brazilian electric distributor is looking to buy back the 9.5% coupon senior perpetual NC5s issued in January 2011. Energisa plans to repurchase the $200m principal at the cost of 101% of face value, plus interest incurred up to the buyback date, amounting to $202m. The bonds were trading at 105-106 Monday in price, according to a trader. Bank of America Merrill Lynch, Morgan Stanley and Santander managed the original issue, rated Ba2/BB minus. Energisa is the holding company for five electric distributors in the states of Paraiba, Sergipe, Rio de Janeiro and Minas Gerais.