Brazilian healthcare provider Rede D’Or São Luiz is heading back to the local debt market to raise funds for investment, in what will be its third bond deal in two months.
The company plans to sell BRL2.7 billion ($510 million) in debentures, according to a securities filing. It aims to price 2035 notes at pre-fixed rates of 15.4%, which is equivalent to a 0.5% spread over the DI, an interbank lending rate currently at 14.9%, according to Broadcast, an online business news service.
The hospital and medical diagnostics firm is a frequent issuer in the capital markets.
In August, it raised BRL2.4 billion in a sale of 2032 notes at 0.95% over DI, 2035 notes at the DI plus 1.05%, and 2040 notes at the DI plus 1.45%.
Rede D’Or also issued $500 million worth of 10-year bonds in September in what was its first incursion into the cross-border market in five years, as part of a strategy to diversify its fundraising.
The firm has been a key driver in the consolidation trend in the local healthcare sector. Rede D’Or is in a “good position” to assess projects for “organic or inorganic” expansion, CEO Paulo Moll said during a conference call with investors last month.