Brazilian Preps Local Hybrids

Viver Incorporadora is preparing to raise BRL125m ($55m) from the private placement of convertible debentures, according to regulatory documents. The builder’s 2016 domestic bond is to pay the DI+2.0% and covert to shares anytime at the holder’s discretion, at a rate of BRL0.25 per share. Viver shares closed at BRL0.24 Tuesday. The deal is open to existing shareholders, with a public sale possible if there are debentures remaining, according to a person familiar with the transaction. The private placement process does not involve any intermediary. The issuer is raising funds for working capital. Viver is rated B1/BB minus on a national scale, Fitch and Moody’s each lowering ratings this year based on execution risk and weak liquidity.