Talk is percolating that an FIDC for petrochemical producer Petroflex might be downsized. So far, investors have snapped up R$49.5 million worth of shares out of an initially planned volume of R$60 million. For the fund to issue more shares, the company must hand over additional receivables or the structure's enhancements will be eroded, said a source close to the deal. That would probably spell trouble for the rating, which is brAAA' by Standard & Poor's. Petroflex is still weighing whether it wants the increased funding. Buyers into the deal include companies and eligible retail investors, as well as the more traditional circle of asset managers. The expected return on the transaction is 104.5% of the benchmark CDI rate. Banco Votorantim is the lead on the transaction.
The Brazilian bank has two other FIDCs on the horizon. Next in line is petrochemical player Companhia Petroquimica do Sul (Copesul). Sized at R$150 million, that deal is due out the second week of February. Queued up behind Copesul is CPFL Piratininga de Forca e Luz with a R$300 million transaction. Votorantim is hoping to squeeze that in around Feb. 19, just days before Carnaval celebrations take over much of the country.