A pay-TV unit of Brazilian publishing powerhouse Editora Abril is looking to tap a new audience. The latest issuer to tune into FIDCs - the nation's most popular investment vehicle - TVA has an R$120 million (US$43 million) program in the works. Collateral is by and large comprised of future accounts receivables linked to 170,000 TVA customers, located in the state of Sao Paulo. A fledgling structure in Brazil, FIDCs combine features of an investment fund and traditional SPV. Local rating agency Austin Asis has rated the deal AA' on the national scale.

Because the underlying assets have yet to be generated, the TVA FIDC carries a performance bond by UBF Garantias y Seguros, the first time a surety has been attached to this vehicle, according to sources. "It provides a better structure for investors," said Francisco Turra, a partner at Integral Trust, which cobbled together the deal.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.