It's never been more stylish to securitize your assets in Brazil. Local clothing label Zoomp is ready to thread its way into the capital market through a receivable investment fund (FIDC), the vehicle of choice for non-real estate issuers. Known more for youthful low slung jeans - which paired with a denim bikini on the website, www.zoomp.com.br, makes for an eye-searing combination - the company is expected to launch a R$60 million ($26 million), three-year final fund by the end of the month. Banco Votorantim is the fund manager, while Banco Itau is the custodian and payment agent. Standard & Poor's has assigned a brAAAf' national-scale rating to the senior tranche, which has a 20% subordination. The projected yield is 109% of the benchmark CDI rate.
The transaction is a standard trade receivables FIDC, with a revolving pool comprised of two asset types. One kind of receivable is generated by multi-label stores that purchase Zoomp's clothing; the other is from credit card purchases made at the company's own stores. Since most of the clothes are sold through the multi-label route, those receivables are projected to account for the bulk of flows, with credit cards representing as low as 20%. Still, they could rise in proportion, according to a source close to the deal.