On August 1 Telesp Celular Participações (TCP) is to hold a public offering of 7,000 non-convertible debentures with a face value of 100,000 Brazilian Reals each, potentially raising 700m BRL (now about 241 million US Dollars). Telesp Celular is a subsidiary of Portugal Telecom.
The funds raised will be used to refinance the company?s second issue of promissory notes, made on February 25 and due August 31. Also worth 700m BRL, the issue was used to pay for the acquisition of Global Telecom.
The new debenture issue was approved on July 10. The company notified the CVM, Brazil?s securities and exchange regulator, on Tuesday, July 15. An ad was published in major dailies on the same date.
The debentures will mature in five years, on August 1, 2008. Payment must be made in full on subscription. According to the tombstone ad, ?no advance reserves or minimum or maximum lot sizes will be established. Preference will be given to clients of the institutions acting as lead managers of the issue, regardless of chronological order?.