Rede to Repurchase $78m in Bond Tender

Brazilian electricity holdco Rede Energia will buy back $78.4m of its outstanding $575m, or 13.6%, in 11.125% of perpetual bonds, it says. The offer to buy up to BRL300m equivalent in the securities expired June 26. Submitting holders receive $480 per $1,000, or $530 for those who met the early deadline of June 12. Both prices included an $80 clearing premium established through a modified Dutch auction. Rede plans to fund the buyback using proceeds from an expected issue of BRL320m in 1-year promissory notes paying 120% of the DI rate. Banc of America and Planner Securities acted as dealer managers. Rede sold $575m of the perpetual bonds in 2007 via Merrill Lynch.