MMX Mineracao e Metalicos shareholders have approved a one-for-20 share split, it said. Shareholders registered as of April 7 are entitled to receive the shares resulting from such a split, which will be credited April 11. The miner controlled by billionaire Eike Batista will also correspondingly change the proportions in its global depository receipts, with each GDR representing one share instead of the previous 20.
Yearly Archives: 2008
Posted inDaily Brief
Peru Sees Sol Bond Sale by Month End
Peru plans to hold another auction of sol-denominated bonds by the end of this month, Jose Miguel Ugarte, executive director of public credit, tells LatinFinance. A $900m-equivalent program kicked off March 27 with the placement of PES273m ($100m) in 2026 bonds at 6.96%. As announced earlier this year, Peru will repay $1.1bn in multilateral debt using a combination of its own treasury surplus and the issuance of sol-denominated bonds through regular sales. Ugarte says Peru is still deciding on the exact mix of its own funds and debt that will form the repayment. A dollar offering this year is unlikely, he explains, given the current state of the US market and Peru’s ability to manage its own financing. Other items on the finance ministry’s agenda this year include supporting reform that increases the amount that pension funds can invest in international assets and the creation of a “Lima-bor” floating interbank benchmark rate, the official says.
Posted inDaily Brief
Posadas Prices MXP1.5bn Bonds
Mexico’s Grupo Posadas priced MXP1.5bn in 2013 floating-rate bonds at 180bp over the 28-day TIIE. The hotel operator had originally planned to also offer up to MXP1bn in 2018 notes, but cancelled the sale due to low demand, it said. Even after shifting all demand to the five-year tranche, the issue was only slightly oversubscribed, says a banker on the transaction, as it was the first time in Mexico a single A issuer had done five-year bonds. A single A credit was always going to be a difficult, says a banker away from the transaction, and 10-year credit was a long shot. Posadas plans to use proceeds to fund a buyback of dollar-denominated debt. As of March 31, it had received tender commitments from a majority of holders of its $225m outstanding 8.75% 2011 bonds, in an offer expiring April 11. Credit Suisse is dealer manager on the tender and also managing the debt sale. Ixe, JPMorgan, BBVA and ING were co-managers.
Posted inDaily Brief
Venezuela Inflation May be Slowing: Fitch
The pace of inflation in Venezuela seems to be slowing thanks to a series of measures taken by the government, Erich Arispe, associate director at Fitch, tells LatinFinance. The view is somewhat contrarian given the bleak outlook other analysts have for the country’s prices. “The high inflation in Venezuela has a domestic component that the government is trying to adjust by reducing expenditure,” Arispe says. The government is also draining liquidity out of the domestic markets by moving deposits out of private banks into public banks and issuing dollar-denominated structured notes to local financial institutions, says the analyst. Still, Arispe expects inflation to rise in the second half of the year because of an increase political spending in the wake of the November legislative elections. Consumer prices in Venezuela rose 1.7% in March and 7.1% in Q1, according to Venezuela’s central bank. The government now expects 2008 inflation to end the year at 19.5%, well above an earlier forecast of 11%. The new projection dismayed some Wall Street analysts who wonder why the administration appears comfortable with such a high figure.
Posted inDaily Brief
Vivo Unveils Telemig Offer
Brazil’s Vivo Participacoes said it will offer BRL63.69 for each outstanding share of Telemig Participacoes and BRL654.72 for each outstanding Telemig Celular share in a public tender auction May 12. The mobile phone operator controlled by Telefonica set the prices to include a 25% premium over the average trading price over the 30 days before the Telemig acquisition announcement in August 2007. Last week Vivo completed the acquisition of a 54% stake in Telemig for BRL1.16bn, and is aiming to delist Telemig shares. Separately, S&P raised its rating on Telemig to BB from BB minus, following the completion of the acquisition.
Posted inDaily Brief
Odebrecht Taps 2017 for $200m
Brazilian construction conglomerate Construtora Norberto Odebrecht has priced $200m in 7.500% 2017 notes at 100.50 to yield 7.426%. The BB+ rated 144a/Reg S issue is a reopening of October’s $200m sale and price talk was heard at 100.00-100.50. Demand reached $400m, according to a banker managing the sale. Size was initially heard at $100m. Proceeds will provide capital to subsidiaries in order to fund a large pipeline of projects. Credit Suisse and Deutsche Bank managed the transaction.
Posted inDaily Brief
PetroFalcon to Buy Anadarko Venezuela
PetroFalcon, a Canadian-listed oil company operating in Venezuela, is buying Anadarko Venezuela from an affiliate of Anadarko Petroleum for $200m. Anadarko indirectly owns 18% of Petroritupano, a joint block with Petrobras, and holds a $58m voucher that can be used as credit with the Venezuelan government for new oil and gas investment opportunities. Sweden’s Lundin Petroleum, which indirectly owns 42% of PetroFalcon, has provided a guarantee to Anadarko for the full purchase price. In consideration for the guarantee, PetroFalcon has agreed to issue 17.1m shares to Lundin Petroleum. The acquisition is subject to government approval. PetroFalcon said it intends to fund the purchase through third-party financing, and is considering debt and equity. Huddleston & Company advised PetroFalcon.
Posted inDaily Brief
Donald Terry to Leave MIF
Donald Terry, the head of the IDB’s Multilateral Investment Fund (MIF), is retiring July 1. He is 62 June 20, and therefore eligible for retirement. Terry is well known for his work on remittances and this week warned that the Mexican economy could be severely impacted if flows from abroad, currently flat, start to drop. A fall in remittances to Brazil is actually a good sign, according to Terry, as more Brazilians stay home or return from abroad because of better economic conditions and the appreciation of the BRL. Terry tells LatinFinance he is talking to the World Bank and other organizations about continuing his career, in Africa.
Posted inDaily Brief
EDC Sets Debt Buyback Price
Venezuela’s Electricidad de Caracas (EDC) plans to pay holders of its 10.25% 2014 bonds $1,167 per $1,000 in a tender offer launched March 7 that expires. As of April 4, EDC had received tenders with respect to $245.5m of the $260m outstanding in the issue. The state-controlled utility has yet to give an indication of how it will fund the tender. ABN AMRO is dealer-manager.
Posted inDaily Brief
LatAm Party Coming to a Close: BCP
The party may soon be over for LatAm as the eventual onset of the commodity bust coincides with the start of the election cycle, says BCP Securities in a note from the IDB meetings. The shop notes “a strange disconnect” at the Miami meetings, characterized by rampant optimism of Latin Americans versus a somber mood from North Americans and Europeans. “Many institutional clients were forced to skip the meetings, due to budget cuts and reduced travel allowances. The venues lacked the flair of previous years, when no cost was spared on entertainment and glitz. Moreover, many discussions focused on the depth of the global financial crisis, and the implications it had for the southern latitudes,” says BCP. “As much as the Latins tried to revive the party atmosphere, there was a sense that it was all over.”