Oi Sees BRL3bn Debt Completing M&A

Telemar, the Brazilian telecom operator also known as Oi, plans to raise BRL3bn in international debt to help finance its acquisition of Brasil Telecom. Options include DCM, a bank loan or multilateral financing. Issuance should come by the end of October and would be the third piece in the fundraising which Telemar expects to total BRL11bn. In addition to using cash, Telemar has issued BRL4.3bn in 8-year CCB bank notes at DI plus 180bp, and placed BRL3.6bn in 1-year paper at DI plus 160bp to fund the purchase. Candidates to lead an international transaction include its CCB lender Banco do Brasil as well as Itau, Bradesco, Banco Real and Santander, managers of the short-term debt sale.