Embraer Cruises In at Tight End of Guidance

Brazil’s Embraer has sold $500m in new 2020 bonds to yield 6.500%, the tight end of 6.500%-6.625% guidance released Wednesday. The aircraft maker priced the 6.375% notes at 99.081 to yield 6.500%, or UST plus 327.7bp. Demand reached more than $2bn, according to investors, and the bond was heard trading up about 0.125-0.250 points in the gray Thursday afternoon. A 6.500% yield represents a concession of close to 50bp to Embraer’s existing 2017s, according to a sellside shop that spotted the notes late Wednesday at around 6.0%. Embraer will use proceeds to repay short-term debt and for general corporate purposes. Deutsche Bank and Morgan Stanley managed the sale, rated Baa3/BBB minus.