Brazilian power distributor Energisa plans to conduct investor presentations today and tomorrow in support of a BRL150m 2014 debenture issue. The Ba3 rated notes pay interest at 110bp over the DI rate. The company plans to conclude the transaction by the end of the month. Proceeds repay existing debt. Citi is lead coordinator of the transaction.
Yearly Archives: 2008
Posted inDaily Brief
UMS to Launch Exchange Warrants
Mexico is set to launch the sale of debt exchange warrants with a total notional value of $1.25bn allowing investors to exchange foreign currency debt for peso debt. Today and tomorrow, investors can buy two classes of warrant allowing the exchange of 21 series of dollar, euro, deutschemark and Italian lira-denominated bonds with maturities between 2009 and 2034 for local bonds. The first warrant has a notional value of about $1bn and offers peso-denominated bonds due 2014, 2017 and 2036. The second is worth roughly $250m and offers 2017 and 2035 debt denominated in UDIs. Holders of the warrants will be able to receive their new bonds on October 9. Barclays and Merrill Lynch are managing the transaction.
Posted inDaily Brief
ISA Authorizes $300m Bonds
Colombia’s state-controlled power grid operator Interconexion Electrica plans to sell as much as $300m in bonds to finance expansion. A debt plan approved by shareholders allows for domestic and/or international issuance at any point in the next 12 months. The debt will mainly be used to refinance short-term borrowing to cover recent acquisitions, a spokeswoman tells LatinFinance.
Posted inDaily Brief
Argentina to Sell up to ARP1bn in Bonars
Argentina plans to issue ARP700m-ARP1bn in a new floating-rate 2013 Bonar bond, according to the economy ministry. The bonds will be sold in an auction Friday, paying 350bp over Badlar. The deal is understood to be self-led.
Posted inDaily Brief
Posadas Waits a Week with Dual-Tranche
Mexico’s Grupo Posadas expects to price up to MXP3bn in 2018 fixed and 2013 floating-rate notes April 8, according to bankers managing the sale. The hotel operator had originally set a date of April 1 for the offer, according to regulatory filings. But a banker on the deal says that was only a provisional date. Posadas plans to use proceeds from the mxA/mxA- offering 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.
Posted inDaily Brief
Unibanco Bolsters Investment Bank
Brazil’s Unibanco is beefing up its investment banking business to take on Itau and Bradesco, as well as US and European banks looking to feed on Brazil’s fee pool. Unibanco will extricate its existing investment banking and capital markets businesses from the institution’s wholesale banking division, allowing it to operate independently. It has also hired two seasoned executives to lead the effort. Eleazar de Carvalho will head the investment bank. He was most recently founder of an asset management fund, and previously president of the BNDES and a senior executive at Citi, Garantia and UBS. Eduardo Gentil, best known for heading Goldman’s first Brazil foray between 1995 and 2001, and most recently hired by Credit Suisse in mid-2007 as an MD alongside Jose Olympio, has also been hired in a senior role. Both have held corporate roles as well. Gentil was CEO of Visanet, while Eleazar was chairman of BHP Billiton Brasil. Gentil and Carvalho will report to Pedro Moreira Salles, CEO of Unibanco. Unibanco’s international brokerage unit, Unibanco Securities, has offices in New York and London and is headed by William Bethlem, former head of capital markets at Unibanco in Sao Paulo.
Posted inDaily Brief
DLJ Raises $300m for South America PE
DLJ South American Partners has started allocating from a new $300m private equity fund. The firm’s main principals, Buenos Aires-based Carlos Garcia and Marcelo Medeiros in Sao Paulo, are heading the effort and have already spent $82m across three deals. “Capital markets liquidity has dried up recently in Latin America and we believe that enhances our opportunities to identify investments going forward,” Garcia tells LatinFinance. The firm will employ various strategies, including buyout and growth capital, across all sectors. It will look to take controlling stakes in companies in order to gain greater influence over management and the exit strategy, says Garcia. The executive declines to specify by when he expects the $300m to be spent, though he speculates that given the number of opportunities, it may be a lot sooner than the fund’s mandated 5-year horizon. DLJ has invested in LatAm for several years from its global fund, but this is its first dedicated vehicle. DLJ South America Partners is a joint venture between Credit Suisse and the management team that was set up in late 2006 to target deals in South America. Since then, the entity’s three deals have been: Arcos Dorados, the LatAm McDonald’s business; Fispal, a food and beverage trade show promoter, of which it acquired 100%; and EBEC, an educational company in Brazil. DLJ joins a number of other PE shops raising new funds for the region, including Advent International and the Carlyle Group.
Posted inWeb Articles
The 20th Anniversary Gala Dinner
LatinFinance has a long track record of comprehensive coverage of Latin America’s leading banks and companies, and cross-border activities. Our knowledge of the market, and of the individuals who drive the public and private sector in and throughout the region, has been 20 years in the making. We will celebrate our two decades of existence with awards for the best and most notable in banking in a gala dinner setting and ceremony that will be attended by the region’s most influential players. We will stroll down memory lane with you as we take a look at 20 years of successes and near successes, individuals, deals and institutions.
Posted inDaily Brief
Moody’s Mulls Independencia Upgrade
Moody’s has put the B3 local currency corporate family rating and the B3 foreign currency senior unsecured rating of Independencia on review for possible upgrade. “The review of Independencia’s B3 ratings reflects primarily the successful reduction of its susceptibility to a trade embargo from importing countries due to animal disease by expanding the number of slaughterhouses from five to 12 and slaughter operations from three to seven states, both by the end of 2008 and compared to when Moody’s first assigned the ratings,” says Moody’s analyst Soummo Mukherjee. The review will consider the company’s longer-term growth and financial strategy and the expected cushion it is likely to maintain with a net debt/Ebitda financial covenant in its $225m bond due 9.875% of 2017 that steps-down from 4.25x to 4.00x at the end of 2008, to 3.75x at the end of 2009 and to 3.50x at the end of 2010.
Posted inDaily Brief
Moody Rates Mexico Auto Loan Trust Debt
Moody’s has assigned a global scale, local currency rating of Baa1 and a rating of Aaa on its local scale to the class A-1 and class A-2 certificates of the Mexico Auto Loan Trust, Deutsche Bank Irrevocable Trust F/781 that were issued by Deutsche Mexico acting solely in its capacity as trustee. The agency also rates the Class B certificates of the same offering as Ba2 and A2 locally. “Interest and principal to certificate holders will be primarily payable with cash flow from vehicle loan contracts originated by the Mexican financial arm of a car manufacturer and assigned to the trust, which was established under the laws of Mexico,” the agency says. “The ratings are based upon the credit quality of the pool, and credit enhancement in the form of subordination, overcollateralization, a reserve fund, and a yield supplement account.”