Brazil-News-Vale taps bank duo for best efforts $2 billion deal

(Reuters) - Following a highly competitive bidding process, Brazilian miner Vale SA (VALE5.SA) tapped BNP Paribas and Credit Agricole as global coordinators of a $2 billion, five-year revolver, sources told Thomson Reuters LPC.

The company is currently in discussions with mandated lead arrangers to further distribute the deal.


In mid-May, the company sent request for proposals (RFP) to its banks. Sixteen banks submitted approved proposals, which included some offers to fully underwrite the deal, sources said.

However, given the interest in the transaction and the liquidity available in the market, the company opted for a best efforts transaction over a fully underwritten deal, the same sources said.

Best efforts transactions relieve underwriters from responsibility for any unsold portions of a loan in the event that they are unable to fully distribute a deal. Such transactions, in general, pay lower fees than those of a fully underwritten and committed deal.

The revolver will back general corporate purposes including liquidity lines for credit ratings purposes, according to sources.

Drawn pricing opens at LIB+55 plus a utilization fee. The loan pays 17.5bp undrawn. The company is offering upfront fees of 40bp.

Vale's pricing is in line with that of other recent mining concerns such as U.K-based Anglo American. The company entered in March a $5 billion revolver that pays LIB+70 plus a utilization fee and roughly 24.5bp undrawn at BBB+.

Vale's last loan transaction took place in April 2011. At that time, a total of 27 banks joined a $3 billion, five-year unsecured revolving credit. The 27 include bookrunners Credit Agricole, JP Morgan, Mizuho and Natixis.

Pricing opened at LIB+65 with a 22.75bp commitment fee at BBB+ ratings. The loan currently pays LIB+55 with a 19.25bp commitment fee at A-ratings.

Headquartered in Rio de Janeiro, Brazil Vale is one of the world's leading diversified metals and mining companies. It has operations in 37 countries, according to the company's website.

(Editing By Jon Methven)

Sluggish Brazil economy erodes Rousseff's popularity

BRASILIA - Growing pessimism over Brazil's sluggish economic performance and rising inflation are starting to eat into President Dilma Rousseff's still-high popularity ratings, an opinion poll showed on Tuesday, the second in a week to show that trend.

World, 11 Jun 2013

Brazil's JBS expands poultry push with $2.75 billion Marfrig deal

SAO PAULO - Brazil's JBS SA will acquire Marfrig Alimentos SA's local poultry and pork unit for $2.75 billion in assumed debt, further extending its reach beyond its core beef business in a deal that throws a lifeline to its financially strapped rival.

Deals, Global Deals Review: 2011 Q3, Global Deals Review: 2011 Q2, Global Deals Review, Inflows Outflows, 10 Jun 2013

Evangelical Christians gain political clout in Catholic Brazil

BRASILIA - When televangelist Silas Malafaia gathered 40,000 followers outside Brazil's Congress this week, it wasn't just to raise their arms to the sky and praise the Lord.

World, Lifestyle 09 Jun 2013

Brazil President Rousseff's popularity falls for first time: poll

RIO DE JANEIRO - Brazilian President Dilma Rousseff's approval rating fell for the first time since her term began in January 2011 as concern about inflation and sluggish economic growth grew, the Datafolha polling agency said on Saturday.

World, 08 Jun 2013

Brazil's JBS agreed to buy Marfrig's Seara poultry unit: source

SAO PAULO - Brazil's JBS SA , the world's largest meat producer, will announce the purchase of Brazilian poultry producer Seara, a unit of Marfrig Alimentos SA , in the coming days, a source with knowledge of the operation told Reuters on Saturday.