Telemar OKs Debentures

Telemar shareholders have approved a plan to issue up to BRL3bn in debentures. The Telemar Norte Leste unit plans to sell 2011 and 2012 notes, paying DI plus 115% and 120%, respectively. Proceeds will repay debt. The Brazilian telecom, operator of the Oi brand, faces bridge maturities from the financing of last year’s acquisition of Brasil Telecom, having borrowed BRL3.6bn in 1-year notes in July and BRL2bn of the same tenor in December. Telemar has also been heard considering a dollar bond in March or April, after a $1.5bn issue of 5 and 10-year bonds was pulled in September.