Food manufacturer Sadia concluded last week the distribution of shares of a new FIDC (Investment Fund in Credit Rights). So called receivables fund, the portfolio was structured by Dutch bank Rabobank International, and shall enable Sadia to raise R$ 120m, paying yield at 0.95% of the CDI (interbank deposit certificate) variation. According to the company, the shares were subscribed by qualified investors (pension funds, financial institutions, non-financial legal entities or high income individuals, experienced in investing), in accordance with the CVM (the Brazilian securities and exchange commission) rules applicable to this type of fund. The fund amounts to R$ 150m. However, as per the CVM rules for this type of fund, R$ 30m worth shares are subscribed by the issuer (subordinated share). This mechanism aims at increasing the guarantee for investors in the senior shares, which have a preference in receiving the yield. Further, the subordinated shares are structured in such a way to absorb the receivables’ default. The administration and distribution of the fund is charged to brokerage firm Concórdia Corretora de Valores, a company controlled by Sadia. The transaction was credit risk rated by Fitch Atlantic Ratings, but Sadia did not disclose the rate. The fund is audited by KPMG and the fiduciary agent is Oliveira Trust, with legal advice being rendered by firms Freitas e Leite Advogados and Machado, Meyer, Sendacz e Opice.

Sources:   Valor Econômico May 26, 2003 p. C1
Date of insertion:   26/05/2003 - 18:18:52