The CEO of Sao Paulo-based BR Towers has shed light on his company’s recent R$300m (US$131m) public bond offering.
When BR Towers formed and made its first acquisition last year – 2,000 towers from Vivo – it sold R$250m (US$109m) notes in a…
The CEO of Sao Paulo-based BR Towers has shed light on his company’s recent R$300m (US$131m) public bond offering.
When BR Towers formed and made its first acquisition last year – 2,000 towers from Vivo – it sold R$250m (US$109m) notes in a private offering to fund half of the deal.
Santander led that offering as well as the latest 10-year R$300m offering, flanked by Itau BBA and JP Morgan.
The interest rate on the original bond was linked to CDI, the local interbank deposit certificate rate, which is used as a benchmark in pricing bonds.
CEO Mauricio Giusti told TelecomFinance the company decided to launch a refinancing so that the interest on the new R$300m notes would be linked to the ICPA, Brazil’s inflation index, as it is the rate used in BR Towers contracts with operators.
BR Towers also chose to refinance because it can now leverage more debt at a lower interest rate given that its business has increased in size.
The company is focusing on organic growth at present by building towers for telcos and for its own operations. But inorganic growth is not out of the question.
“We are very assertive in looking at opportunities for acquisitions in the market, be that a medium or small sized towerco in Brazil or a portfolio of towers a telco may be looking to sell,” Giusti said.
BR Towers made its last acquisition just over two months ago, acquiring the rights to 2,113 towers from Brazilian wireless operator Oi for R$502m (US$211m). This took its portfolio to more than 4,000 towers.
