Brazilian Debutant Targets Single Digits

Brazilian sugarcane processor Tonon Bioenergia is aiming for high 9%-area initial price thoughts on a debut $250m 2020 NC4 bond, according to people following the sale, with investor interest heard reaching more than $700m by late Tuesday. Pricing for what would be an international market debut is expected as soon as today. Tonon finished a roadshow Tuesday following visits to Boston, London, Los Angeles and New York. Peer Grupo Virgolino de Oliveira’s (GVO) 2018 and 2022 bonds are considered to be direct comps, along with Usina Sao Joao Acucar e Alcool’s (USJ) 2019 bonds. BTG Pactual, Itau, and Santander are managing the B/B sale.