FINEWS LATAM-Brazil's OSX may pay 11 pct yield to sell $265 mln in bonds-source

OSX Brasil SA, the shipbuilding company controlled by Brazilian billionaire Eike Batista, could pay yields between 10 percent and 11 percent to sell $265 million of secured bonds, a source with direct knowledge of the deal told Reuters. The bond will mature in June next year, and proceeds from its sale could be used to fully fund the remaining capital requirements of the construction of the FPSO OSX-3 and cover debt-servicing costs.

Under terms of the bond, OSX agreed to maintain an equity ratio of at least 20 percent or else be subject to an early repayment of the bond, said the source, who refused to speak on the record because terms of the transaction are not public. Pareto Securities is handling the transaction for the Brazilian company.