BRF CAPTURES $ 750 MILLION ABROAD

The BRF, Brazilian company in the food sector, photographed about $ 750 million yesterday by two debt securities issues abroad-a denominated in dollars and the other in dollars. In two tranches, paid the lowest cost of history between Brazilian companies for equivalent emissions, says Leandro Miranda, Director of fixed income of Bradesco BBI, who coordinated the operation alongside BB Securities, Itaú BBA, Morgan Stanley and Santander.
At issue in dollars, with a maturity of ten years, the BRF has raised $ 500 million, with demand that exceeded $ 4 billion. The spread stood at 220 basis points above u.s. Treasury securities--the equivalent of a return to the investor of 4.135 percent a year, less than the indicative points 237.5 Prize on offer and below also paid by Petrobras in equivalent emission closed earlier this week.
Despite being ranked better than the BRF, ten years of Petrobras came out with a spread of 260 points, corresponding to a return of 4.522 percent per year. "The smaller Prize, paid BRF transmitter awarded one or two steps above your current rating (' BBB-')", says Miranda. The issue of Petrobras was valued at "BBB" by S&P. "Only the Cielo and the National Treasury had managed to pay lower yields," said another Executive who accompanied the operation.
The BRF has managed to even tranche, in dollars, pay a return below the paid on the secondary market. In General, Marx explains, companies pay awards for new issues. According to him, taking into account the secondary offering price should pay a premium of 225 points.
The real giveaway, which has a period of five years, the BRF raised r $ 500 million, after attracting demand of almost r $ 1 billion. The return to the investor was 7.75% per annum, in line with the estimated. The cost, says Miranda, is also the lowest paid by a non-financial company in a real issue. This year, Cosan and Odebrecht captured in real for five years, paying 8.8%, respectively, in a reopening of the issue and 8.375% per year.
For Leopoldo Saboya, Vice President of finance, administration and investor relations of the BRF, low cost paid by the company must not only to financial soundness, but also to the fact that it is a rare role on the market. "The BRF is not a frequent issuer," he says. He recalls even though there are few food options. In the secondary, he adds, the investor does not guarantee price or volume.
Saboya account that the BRF will use $ 500 million to pay off bank loans and buy back part of an emission, which expires in 2017. "The operation had as major objective the exchange of debt, we need to capture to invest," he says. Still, account executive, the company did not want to give up low cost and photographed over r $ 500 million in actual tranche for the box.
The last issue of the BRF occurred in June last year. Were two tranches maturing in 2022. In the first, raised $ 500 million paying 6% p.a. yield. At the reopening, two weeks later, captured another $ 250 million, 5.5% per year.