ISA Brasil Unit Launches $354m Buyback

ISA Capital do Brasil, the holdco for its 89% ownership in Sao Paulo electricity transmission utility CTEEP, has launched an offer to buyback all of the outstanding $354m of its 8.8% 2017 bonds, it says. Holders have until March 8 to agree to swap the bonds for $1,082.50 per $1,000.00 principal, or $1,117.50 per $1,000.00 before February 24. It is also asking holders at the same to waive a set of covenants on the bond issue. HSBC is managing the process. ISA Capital plans to fund the buyback through issuance in Brazil’s domestic markets. The bonds were originally sold in January 2007, as part of a 2-tranche sale through ABN and JPMorgan that also included $200m in 7.875% 2012 bonds.