A new structural twist will soon join the landscape of receivable investment funds (FIDCs), Brazil's most popular securitization vehicle. Structuring agent Hampton Solfise last week roadshowed an FIDC for Brazilian packaging company Canguru Embalagen, a fund that features R$40 million ($19 million) in senior notes with a five-year maturity. Standard & Poor's rated the senior shares brBBBf' on its national scale. Collateral consists of existing and future accounts receivables. Mellon Servicos Financeiros is the fund administrator and Banco Itau is the custodian.

The novelty of the deal stems from the effective partial guaranty that the existing assets in the underlying pool are providing for the senior notes, thereby mitigating the risk of the future flow portion. "The structure is somewhat linked to the risk of the originator (Canguru), which has a lower rating than the preliminary ratings assigned to the fund's senior shares, because part of the fund's structure relies on future receivables," said Pedro Gazoni, associate at S&P. "However, the existing trade receivables will be structured through share subordination at the brAAAf level to partially guarantee the amortization and redemption risk of the fund's shares."

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