OGX Mandates Banks for Dollar Bond

OGX is heard to have mandated banks for an expected dollar bond issuance. Credit Suisse, HSBC, Itau and JPMorgan are heard to have received the mandate. The deal would be the first debt foray for an Eike Batista company. After OGX raised $3.4bn equivalent in a 2008 IPO, its sister unit OSX had a rough go, raising 62% less than planned through its IPO in 2010. The company may be challenged to sell to fixed income buyers, given that it has yet to generate positive cashflow. An OGX investor relations official declines to comment on the plan, though he acknowledges debt funding is part of its fundraising plans. Galvao Participacoes, a holdco for energy company Galvao Energia, recently received a B+ rating from Fitch, though no specific plans have been heard. Other companies in the Brazilian energy space heard considering international bond issues include power companies Rede and Coelba.