Telemar Mulls Bond Revival

Brazil’s Telemar is considering a return to the dollar bond markets in March or April, according to DCM bankers familiar with the credit. The BBB minus/Baa3 rated issuer cancelled a $1.5bn sale of 5 and 10-year dollar bonds in September, whose proceeds were earmarked to help fund the purchase of Brasil Telecom. It opted instead to place in December BRL2bn worth of 1-year local notes. Telemar has BRL5.6bn in local bonds due this year, including BRL3.6bn in July. A new 2009 issue would likely be large enough to cover a large part of what is due this year, bankers say. A 5-year tenor may be preferred, given the headwinds issuers face this year. Telemar is heard working with Citi and Santander, the same lead managers as on the September attempt.