Mall Operator Shops for 12%

Brazil’s General Shopping is out with guidance of 12% area on a new perpetual subordinated hybrid bond. The Brazilian shopping mall operator is seeking up to $250m and meets investors today in Miami before heading to Los Angeles on Friday and wrapping up in Chile on Monday. The potential B2/B bond features a fixed-to-floating structure. Proceeds would fund development of 6 new greenfield projects and be used for general corporate purposes. Bank of America Merrill Lynch and Goldman Sachs are managing the sale. In November, General Shopping sold a $200m 10% NC5 perpetual, and retapped it in April 2011 for $50m, getting a 9.842% yield. Those bonds were trading at 9.35% Wednesday, according to an investor.