Ford $1 billion deal helps Bradesco win U.S. underwriting role

SAO PAULO (Reuters) - Brazilian investment bank Bradesco (BBDC4.BR)BBI SA extended its push into the U.S. market on Friday by clinching a double role as join-lead manager and bookrunner of a $1.04 billion sale of asset-backed securities by Ford Motor Co's finance unit.

Bradesco BBI, the wholesale and investment banking unit of Brazil's Banco Bradesco SA , was one of four banks advising Ford Motor Credit Company on the sale of securities. The notes are backed by a revolving pool of prime retail sales contracts secured by new and used vehicles originated in the United States by Ford Credit, and have a five-year maturity.

The transaction, which was upsized from an initial $750 million, was the first in which a Brazilian investment bank acted as a bookrunner and lead manager for a sale of an ABS in the world's largest bond market. Bradesco advised Ford Credit in similar deals over the past three years.

The sale comes as spreads, or how much extra yield an issuer has to pay relative to U.S. benchmark rates, for some asset-backed securities tightened in April. Yields for U.S. transport sector ABS deals narrowed more than in other segments, such as student loans and credit cards, according to Barclays Plc data.

Investors placed $4 billion worth of bids for the Ford Credit securities, Bradesco said in a statement. A first, $1 billion portion of senior notes rated 'AAA' was sold at a yield of 0.52 percentage points over the five-year mid-swaps rate. Initial price guidance was for spread between 0.55 points and 0.60 points.

A second, $40 million subordinated portion was sold at a yield of 0.65 points above the five-year mid-swaps rate.

In addition to Bradesco BBI, Ford Credit hired the investment banking units of Bank of America Corp , JPMorgan Chase & Co and SMBC Nikko Securities Inc to help with the deal.

(Editing by Todd Benson and Tom Brown)

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