Brazil’s TAM Sells US$ 457 Million in Bonds to Finance Expansion

Brazil’s largest airline company, TAM, in a push to finance the expansion of its fleet, has filed a request before the Brazilian CVM (Comissão de Valores Mobiliários), the country’s stock regulator, to issue as much as US$ 1 billion reais (US$ 457 million) in bonds over the next two years.

The Program debentures will be non-share convertible, and issued as subordinated, unsecured or guaranteed debentures.

The São Paulo-based company also submitted the request to conduct its first public distribution of 50,000 debentures for a total amount of R$ 500,000,000.00, with a term of six years counting from the date of issue.

Air travel in Brazil has been growing at a rate of more than 10% a year. TAM needs the money to maintain its growing fleet in the coming years and is taking advantage of more affordable loans being offered by the Brazilian market at the moment.

At the end of last month, the airline announced the purchase of 37 Airbus planes at a cost of US$ 3 billion.

TAM has been the leader in the Brazilian domestic market for more than two years, and held a domestic 47.6% market share and international 37.9% market share at the end of June 2006.

The company operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances.

TAM – www.tam.com.br

Tags:

You May Also Like

Biokerosene creator, Expedito Parente

This Brazilian’s Obsession: Get the World to Use His Biojet Fuel

At age 66, Doutor Expedito has never been so requested. His biokerosene should pave ...

71.3! Expect to Live that Much if You Are Brazilian

The life expectancy of both men and women who were born in Brazil in ...

WTO Panel Rules Against US on a Case of Brazilian Orange Juice

A dispute settlement panel from the World Trade Organization has ruled that the United ...

Porto Murtinho, in the Brazilian Pantanal

A Crazy Lady Tries to Make Sense of Life on Brazil’s Frontier

To the uninitiated, Porto Murtinho may seem like the middle of nowhere – or ...

Interest Rate Fears Bring Brazil Market Down

Brazilian and Latin American stocks mostly declined, as Brazil’s market fell sharply on interest ...

Downtown São Paulo seen from the Ibirapuera park

São Paulo, Brazil’s Largest City, Isn’t Just All Business Anymore

Everything is superlative in São Paulo, from the size of the city to the ...

Jobs Grow 3.65% in First Half, in Sí£o Paulo, Brazil

The level of employment in the industrial sector in the state of São Paulo ...

Brazil’s MST: ‘Despite Police Provocation Our 230-Km, 12,000-People March Was a Success’

On May 17, after walking more than 230 kilometers, the 12 thousand workers who ...

Brazil’s Gol and Varig Merge Operations and Enhance In-Flight Service

Brazilian airline Gol has announced that it has received ANAC (Brazil's National Civil Aviation ...

Brazil Sees Silver Lining of World Crisis: a More Realistic Dollar

Brazil's currency may not strengthen to previous levels because of ongoing global market turmoil ...