Odebrecht Wins Reverse Flex on Loan

Brazil’s Odebrecht has completed a 20bp reverse flex on a $1.1bn 12-year loan to finance construction of 2 oil platforms, according to bankers familiar with the transaction. After receiving $2bn in demand on commitments from 19 banks when it closed last week, pricing fell to 255bp over Libor from 275bp for years 1 through 6. It was also cut, to 280bp from 300bp over Libor, for years 7-12. Bankers expect most of the institutions that had expressed interest to participate, despite slimmer returns. The loan consists of a $220m ECA tranche, while Odebrecht will seek MLAs to build an $860m commercial bank syndicate. Fees for MLAs were said to be 200bp. BNP and HSBC are leading the transaction.