Brazil’s Oi halts $1.22 bln local bond sale

* Telemar Norte Leste suspends bond sale plan for 60 days

* $1.22 bln bond sale halted on Brasil Telecom restructure

SAO PAULO, Feb 2 (BestGrowthStock) – Telemar Norte Leste
(TMAR5.SA: ), the operating unit for Brazil’s largest phone group
Oi, said on Tuesday it asked the country’s securities regulator
to suspend the sale of 2.25 billion reais ($1.22 billion) in
local bonds for up to 60 days.

The company and Banco Santander Brasil, the underwriter of
the offering, filed the request “because of the need for more
information regarding the next steps in the shareholding
restructure of Brasil Telecom SA,” Telemar said in a securities
filing.

Telemar had planned to raise the funds in two tranches, a
five-year issue that would pay a spread of up to 1.2 percentage
points above Brazil’s DI interbank rate, and a 10-year issue
linked to the benchmark IPCA inflation index.

Oi (TNLP4.SA: )(TNE.N: ) in January suspended the purchase of
Brasil Telecom’s stock from minority shareholders because of
bigger-than-expected losses from lawsuits at Brasil Telecom. Oi
took over control of Brasil Telecom (BRTO4.SA: ) last year and
had planned to buy out minority shareholders.

The company planned to use proceeds from the massive bond
sale to pay a loan used to take over Brasil Telecom.

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(Reporting by Elzio Barreto, Editing by W Simon )

Brazil’s Oi halts $1.22 bln local bond sale