The Brazilian onslaught is over. While the country will no doubt produce more cross-border transactions this year, no one expects a repeat of the scale and frequency experienced over the last two months. "There's room to do more, but I don't expect a lot happening in what's left of the year," said a Sao Paulo-based banker.

Banco Bradesco and steel producer CSN provided the encore for the massive showing. In all, issuers have tapped the market for roughly US$2.1 billion since July 1. Last week, Bradesco priced a US$400 million, two-tranche bond backed by diversified payment rights via ABN Amro (see ASR 8/4, p. 20). The unwrapped slice of the deal was upsized to US$200 million from US$100 million to accommodate additional orders, according to a source on the deal. "Some investors that initially wanted the wrapped tranche went for the other one," the source said. Rated BBB' and Baa1' by Standard & Poor's and Moody's Investors Service, the unwrapped portion priced at 6.905%, translating into a spread of 365 basis points over five-year treasuries. The deal had a legal final maturity of seven years and an average life of 4.76 years. The other tranche, also for US$200 million, priced at 68 basis points over 3-month Libor thanks to a wrap from MBIA. The average life was slightly longer than the other tranche. For Bradesco, cross-border legal counsel was Dewey Ballantine and domestic counsel was Pinheiro Neto. ABN retained Mayer, Brown, Rowe & Maw as counsel for the foreign portion and used Souza, Cescon Avedissian, Barrieu e Flesch on the domestic front.

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