Minerva Sets Yield Target

Brazil’s Minerva has indicated 8.25%-area guidance for a new 2023 bond expected to price today. The issuer was heard with $2.25bn in orders Wednesday afternoon, for what should be a minimum $500m size. The yield level has been brought in from mid-to-high 8% initial price talk. Minerva plans to use proceeds to fund a cash tender launched January 11. The issuer is looking to replace its 9.500% 2017, 10.875% 2019 and 12.250% 2022 bonds. Minerva is offering holders $1,105 per $1,000 principal of the 2017s, $1,200 per $1,000 of the 2019 and $1,262 per $1,000 of the 2022s. The prices include a $30 per $1,000 bonus for holders accepting before a January 25 early deadline. The full tender offer expires February 8. There is $34m outstanding in the 2017 bond, $372m of the 2019 and $450m of the 2022. BTG Pactual, HSBC and Credit Suisse are managing the tender and new issue.