Brazil's Banco Itau closed a $345 million deal backed by diversified payment rights (DPRs) on June 30. Proceeds went, at least in part, to prepay an existing series off the bank's securitization program, according to Monica Arruda, a senior manager at ITAU.

A seven-year, $200 million tranche wrapped by Ambac priced at 20 basis points over six month Libor, according to a source familiar with the deal. A three-month, $145 million unwrapped tranche priced at 30 basis points over six month Libor. Standard & Poor's rated the unwrapped notes BBB'.

For sole lead Calyon Securities, this deal was a debut in Latin American future flows. The arranger dropped the triple-A rated tranche into one of its conduits, while the other tranche was sold to the bank market. To win the mandate, Calyon had to give Itau a firm commitment on pricing, a source said.

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