Brasil Telecom sells USD1.5bn of bonds in US

7 Feb 2012

Brazilian telecoms operator Brasil Telecom, part of the Telemar Norte Leste (TNL, or Oi) group, confirmed yesterday that it has sold USD1.5 billion of ten-year senior unsecured notes in the United States’ credit market. News feed IFR says the book-runners managing the sale were Bank of America Merrill Lynch, BES Investimento do Brasil, Barclays Capital, BTG Pactual and HSBC. ‘The resources raised abroad will be used for general corporate purposes and to extend the profile of the company’s debt,’ said Oi finance director Alex Zornig in a statement. It is understood the 5.75% bonds were sold in the Rule 144a private-placement market and will be listed on the Global Exchange Market of the Irish Stock Exchange.

Brasil Telecom’s parent, Oi, is looking to finalise a major corporate restructuring before the end of February, through which it plans to simplify its corporate structure by taking four operating units – Tele Norte Leste Participacoes, Telemar Norte Leste, Coari Participacoes and Brasil Telecom – and merging them into Brasil Telecom, which would be renamed Oi SA.

Brazil, Oi