Brazilian firm hires banks for bond sale

Bloomberg

Autopista Regis Bittencourt SA, a Brazilian toll road operator ultimately controlled by Italy’s Benetton family, has mandated three banks to sell as much as 1.7 billion reais ($408 million) of bonds in the local market.
Banco BTG Pactual SA, Banco Itau Unibanco Holding SA and Banco do Brasil SA have been selected by the Registro, Sao Paulo state-based company to handle a dual-tranche deal that will be offered before the end of October, according to people with knowledge of the matter, who asked not to be named as the plan isn’t public yet.
The company confirmed the hiring of the banks and the size of the deal in an email, but didn’t comment further on timing or other specifics. Itau and Banco do Brasil didn’t immediately respond to requests for comment while BTG declined to do so.
Regis Bittencourt, which owns a concession to operate 403 kilometres (250 miles) of a highway linking Sao Paulo with Curitiba until 2033, will look to sell a first tranche of 1 billion reais maturing in 2031 that will pay inflation (IPCA) plus margin and a second tranche of 700 million reais coming due in 2027 at the inter-banking rate per one day (CDI) plus a margin.
Margins will be determined after a book building auction.
The company will use proceeds from the sale to refinance debt and for capital expenditures. Regis has 921 million reais in loans maturing in 2023 and 2024.
The banks have told Regis that the second tranche could price at around CDI plus 1.1%, two of the people said. Arteris SA, the holding company that controls the toll operator, did its homework in August after getting its ratings raised by S&P Global Ratings. Spain’s Abertis SA controls Arteris while financial services provider Brookfield Aylesbury SARL holds a minority stake.
Regis’ offering would come as Brazil’s local bond market is booming. Investors have been shifting to corporate bonds as rates on government debt fall to new lows.