Fitch has downgraded Petrotemex, the Mexican petrochemicals company, to BBB minus from BBB. The rating action affects Petrotemex’s $75m privately placed senior notes due 2012 to and the $115m guaranteed senior notes due 2014 issued by its subsidiary DAK Americas. The outlook was also revised to negative. The move reflects additional concern over Petrotemex’s ability to generate profits going forward, says Fitch.
Yearly Archives: 2008
Posted inDaily Brief
Brazilian Metalmaker Eyes Local Converts
Brazil’s Paranapanema has filed to issue convertible debentures worth up to BRL900m. As part of a 2006 agreement with creditors, the tin and copper producer has the option of selling the immediately convertible bonds instead of doing an IPO. In March Paranapanema cancelled an IPO that it had suspended in December. It has until June 18 to sell either shares or converts. If issued, the notes would be for maturities of three and 11 years. The company did not unveil the timetable or additional details of the operation, which still must be approved by regulators.
Posted inDaily Brief
Energisa Debentures Move Ahead
Brazilian regulators have approved a BRL150m sale of 2014 debentures from power generator Energisa. Fitch gave an A local rating to the notes, which pay 110bp over the DI rate. Energisa will use proceeds to prepay debt maturing in June. Citi and HSBC are managing the sale.
Posted inDaily Brief
Brazil’s Gerdau Buys into Guatemalan Steelmaker
Brazilian iron processing giant Gerdau has acquired a 30% stake in Guatemala’s Corporacion Centroamericana del Acero (CCA). In addition to the stake, whose value was not disclosed, Gerdau plans to invest $180m in CCA. A company spokeswoman says the deal was financed with cash on hand. CCA has production and distribution facilities in Guatemala, Honduras, El Salvador and Belize, among other countries.
Posted inDaily Brief
Peru Set for Sol Notes
Peru’s finance ministry plans to offer up to PES400m ($140m) in sol-denominated 2031 bonds in the local market today. Last month, Peru sold PES273m in local bonds as part of its plan to sell PES2.88bn in local debt this year via monthly sales.
Posted inDaily Brief
Bancoldex Places COP324bn Issue
Colombia’s state development bank Banco de Comercio Exterior de Colombia has sold COP324.5bn ($183m) in bonds locally. It placed COP193.3bn worth of paper maturing in 24 months at the DTF rate plus 2.39%, and COP131.2bn in 36-month bonds at DTF+2.55%. Demand reached COP533bn. Proceeds will strengthen the bank’s lending capabilities to domestic companies to help them finance expansions.
Posted inDaily Brief
Venezuela Sets Price for $3bn in Bonds
Venezuela set a price of 115% of face value for its $3bn dollar-denominated 2023 and 2028 bond issue. The sovereign is offering $1.5bn in 9.0% of 2023 and $1.5bn in 9.25% 2028 notes in a sale mainly directed at companies in the food, medicine and manufacturing sectors. Only Venezuelan individuals or entities may buy the bonds, but international investors will be able to purchase in the secondary. The sale is designed to feed local demand for dollars while curbing their value on the black market. Books are set to close tomorrow. Barclays and Deutsche Bank are managing the sale.
Posted inDaily Brief
Megacable Raises Dual Currency Loan
Mexico’s Megacable has raised a dual currency loan denominated in pesos and dollars worth $260m, say bankers on the deal. The 2.4-year average life amortizer pays TIIE plus 65bp on the peso portion, and 65bp over Libor on the dollar portion, with roughly half allocated to each tranche. BBVA and JPMorgan led, with Scotia, BofA, Banamex, Rabobank and Santander as co-leads.
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AIG to Deploy $700m in Regional PE Fund
AIG Capital, the private equity arm of the US insurance group, has closed a $692m fund targeted at four LatAm markets. The Brazil Special Situations Fund II (BSSF II) will look to invest growth capital through mostly minority stakes in the region, Ana Vigon, head of LatAm private equity at the firm, tells LatinFinance. The fund has a mandate to allocate 70% in Brazil, where the firm has 14 professionals including four senior executives. The rest will be placed in Colombia, Peru and Mexico. The fund targets returns of 25% but expects to achieve more. “Our BSSFI fund had an [annual] return of 34%,” says Vigo. The company has already clinched two investments, including one in Colombia – a $10m stake in Falcon Farms, a flower grower. “We plan to set up an office in Colombia by the end of the year,” adds Vigon, pointing to the growing opportunities she sees in that market. The BSSFII is a follow-up to the $215m BSSFI, which was marked by a successful early stake in Brazilian airline Gol. AIG also has two professionals operating from its Mexico office.
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Banco Industrial Prepares Hybrids
Guatemala’s Banco Industrial is preparing to issue Tier-1 hybrid debt securities due 2068. Guidance on the notes is heard at 9%-10%, says a banker away from the deal. The size of the issuance has yet to be determined. The notes are rated B+ by Fitch and Ba3 by Moody’s, both which expect to give the notes an equity classification. The Guatemalan bank, which has been acquiring local rivals, had planned to do an IPO on the Mexican Bolsa. The deal through Credit Suisse was expected in February, but it is now on ice. Credit Suisse is leading the hybrid. Fresh from buying a Honduran bank and on the verge of opening in El Salvador, Industrial continues to push into still relatively virgin Central American retail banking territory. Guatemala’s largest bank also hopes to be the first to forge a path north, with plans to expand into southern Mexico. Industrial’s holding company BI Capital – registered in Panama – has $6.4bn in assets, $3.5bn in loans, deposits of more than $5.0bn and about $650m in capital.