Telemar Rings Reloaded Local Issue

Telemar has rebalanced the tranches on a BRL2bn domestic bond sale, which was postponed in January, slightly reducing supply at the long end. The new deal will include a BRL1.8bn 4-year, previously BRL1.5bn at 5 years, and a BRL200m 10-year, formerly BRL500m, it says. The new amounts have been approved by shareholders. The company will still have to determine the rates it plans to pay and await regulatory approval before issuing the notes, likely by mid-year, an investor relations official says. In the original plan, the 5-year tranche was set to pay DI plus 1.20% and the 10-year priced at inflation plus 8%. Proceeds from the sale will repay debt. Telemar, also known as Oi, is rated AAA on a national scale. BTG Pactual and Santander are managing the transaction, which was pulled at the start of the year amid reported investor pushback.