Localiza Suspends Debentures

Brazilian car rental agency Localiza has suspended plans to issue BRL300m in 2012 debentures for up to 60 days, citing poor market conditions. It began the operation September 16 through Unibanco and aimed to set the coupon during bookbuilding. The issue was to be a follow up to an August offering of BRL300m in 2011 bonds at DI plus 180bp via Bradesco, as Localiza continues to raise funds to expand its fleet. LatAm’s largest car rental provider also has the option of short-term paper, having sold BRL300m in 1-year promissory notes at DI plus 95bp in February.