Brazilian Launches Liability Management

Brazil’s Sifco has launched a cash tender offer for its 2016 bonds, and plans a new 2018 bond of up to $200m to replace it. The manufacturer of forged components for the auto industry is targeting any and all of its $75m outstanding 11.50% 2016 bonds, it says, offering $960m per $1,000 principal in an offer expiring November 20. Holders tendering before a November 2 early deadline receive $1,000 per $1,000. The deal is subject to the completion of a new bond sale. Goldman Sachs, Citi, and Banco Pine are managing the tender offer and also taking Sifco to meet investors beginning this week. The roadshow starts in New York on Thursday and then makes its way to the US West Coast, Hong Kong, Singapore, London and Boston before finishing in Miami and Santiago on November 2. The issuer is targeting a $200m 2018 sale, according to Fitch, which assigns a B minus rating to the potential deal. Sifco met investors in Europe, the US and LatAm in July with Citi and Goldman, but did not issue. The 2016 was originally sold last year through a RegS transaction.