Brasil Telecom Controller Eyes Short Debt

Invitel, the indirect controlling shareholder of Brasil Telecom, plans to sell BRL950m in 180-day promissory notes. It aims to pay interest of DI plus 4.5%, and use proceeds to repay 1-year promissory notes maturing at the end of the month. Itau is managing the transaction, with Santander, Banco do Brasil and Unibanco as co-managers. The banks are offering a firm guarantee and will hold the notes if there is insufficient demand. Invitel has 99.99% of the shares issued by closely-held Solpart, which in turn owns 51.41% of the voting capital of BrT Part, controller of Brasil Telecom. Brasil Telecom agreed to be acquired by Telemar in March for about BRL13bn, in a transaction still awaiting legal approval.