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UPDATE 2-Brazil's Americanas raises $760.8 mln in share offering
March 9, 2017 / 11:14 AM / 9 months ago

UPDATE 2-Brazil's Americanas raises $760.8 mln in share offering

(Adds final deal terms, share performance)

By Paula Laier and Guillermo Parra-Bernal

SAO PAULO, March 9 (Reuters) - Lojas Americanas SA raised 2.405 billion reais ($760.8 million) from the sale of new common and preferred shares in a restricted-efforts offer, helping Brazil’s largest discount retailer reduce debt and pay for expansion.

In a securities filing, Americanas said the offering involved the sale of 9.3 million common stock at 12.71 reais each and of 142.9 million preferred stock at 16 reais each.

A person with direct knowledge of the deal said investor demand came in at about twice the amount of shares offered, according to its final terms.

The successful fundraising underscores rebounding interest in Brazilian shares among investors.

Government efforts to rebalance fiscal accounts are drawing money back into Brazil, even though the country is struggling with a recession that is entering a third year.

The share sale was a primary offering in which all the money raised goes into the company’s coffers. This year, two initial public offerings have priced, marking the busiest local stock and debt fundraising period in six years.

Rio de Janeiro-based Americanas hired Credit Suisse Group AG to manage the deal, jointly with investment banks Itaú BBA SA, BB Investimentos, Bradesco BBI SA, Grupo BTG Pactual SA, JPMorgan Chase & Co and Santander Investment Securities.

Preferred shares in Americanas fell 0.9 percent to 16 reais in early Thursday trading, approaching an 11-week low.

Public offerings with restricted efforts differ from standard equity offerings in that a company does not have to request registration of the plan with securities industry watchdog CVM. Only qualified investors can participate in such offerings, and the deals cannot be marketed through road shows or the media.

$1 = 3.1610 reais Reporting by Paula Laier; writing by Guillermo Parra-Bernal; editing by Jason Neely and Chizu Nomiyama

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