BR Malls Shops for Sub-9%

Brazil’s BR Malls is out with guidance of 8.75% on a new perpetual NC5 bond, according to investors. The BB/BB minus shopping center operator is set to conclude US, Asian and European investor meetings Thursday, with a deal to follow. BR Malls has not indicated the size of the issue. Investors expect it to raise around $200m, given the volume of recent perpetuals. BTG and Deutsche Bank are managing the transaction. In the last perpetual of 2010, BB minus/Ba3 General Shopping, in the same sector as BR Malls, got a yield of 9.75%. Developer Cyrela met investors in November, but elected to wait on a possible perp and is heard to be still considering a deal. BR Malls’ last dollar bond was a $175m perp done in November 2007 through Citi and UBS.