Triangulo Restarts Local Bond

Brazilian road operator Triangulo do Sol Auto-Estradas has initiated investor meetings as it restarts a domestic bond sale process paused in November. Bookbuilding for the 2-tranche BRL620m ($305m) transaction due 2020 should start February 6 and conclude by the end of February, according to a prospectus. A first tranche would pay DI plus up to 3.0% as originally planned, while an inflation-linked second tranche should offer up to 8.0%, an increase from the 7.5% ceiling the Atlantia Bertin unit had set when it originally registered its intentions in August. The first tranche amortizes twice annually beginning 2014, and the second annually beginning 2014. The exact amount of each portion and its interest rate will be determined during the bookbuilding process. The transaction may be upsized by as much as BRL217m. Proceeds are for repaying BRL620m in 1.5-year debt due in October that is costing it DI+2.5%. BTG Pactual, Bradesco, Itau and Santander are managing the sale, rated AA/AA on a national scale.