BR Malls Tightens Perp Price

BR Malls has raised $230m in the region’s first perpetual bond of the year. The BB/BB minus Brazilian mall operator priced at par with an 8.500% coupon to yield 8.500%, tight to 8.625% area guidance, revised from earlier guidance of 8.750% area. The deal drew more than $800m in orders, according to bankers on it. The NC5 bond was seen up about 0.50 points Thursday afternoon. With the issuer’s outstanding perp up for call in 2012, more relevant comps were Cosan’s (BB/BB) perp, trading at about 8.0%, and the smaller BR Properties (B+/Ba3), trading around 9.0%, according to investors. The $230m amount represents the issuer’s pre-determined limit, according to bankers on the deal. BTG and Deutsche Bank managed the transaction. Compatriot Energisa plans to follow with a NC5 perpetual, and is meeting investors through January 19. Developer Cyrela met investors in November, but elected to wait on a possible perp and is heard to still be considering a deal. BR Malls’ last dollar bond was a $175m perp with a 9.750% coupon in November 2007 through Citi and UBS. The last LatAm perpetual was BB minus/Ba3 General Shopping, $200m at 9.75% in November.