Brazilian retailer Marisa plans to raise BRL350m ($194m) in the local bond market. The 5-year bond is expected to pay interest at up to 111.2% of the DI, and amortize equally in years 4 and 5. An investor relations official declines to provide the name of the bank managing the sale, to be done under the rule 476 restricted format.
Yearly Archives: 2011
Posted inDaily Brief
Quinenco to Market Local Bond
Chile’s Quinenco is expected to begin marketing this week an up to UF4.65m ($201m) bond offering in the local market with a view to pricing by month’s end. The holding vehicle for the Luksic family is preparing a 7-year bond of up to UF2.3m in size with a 3.5% coupon and 2-year grace period, and a 21-year bond of up to UF2.3m with a 4% coupon and up 15-year grace period. It will use the proceeds for its investment. Banchile and BBVA are managing.
Posted inDaily Brief
Uruguay to Upsize 2028 in Tender’s Wake
Uruguay will bring its new 2028 bond issue to $2.0bn outstanding, upon completion of an exchange offer and a $275m-equivalent retap that was part of liability management operation to replace expensive peso, euro, and dollar debt with a new peso inflation-linked benchmark. The sovereign is set to pay UYP14.42bn ($725m) in new 2028 bonds to holders of existing 5.0% inflation-linked 2018 bonds that accepted a tender offer closed Friday. The sovereign had offered the new 2028s at a rate of UYP110.25 in new 2028s per UYP100 principal of the 2018s. This operation follows the sale of UYP19.906bn ($1bn) of the 4.375% 2028s for cash on December 5. After seeing strong demand in that original sale, the sovereign reopened $275m in 2028 bonds for cash Monday, bringing the total outstanding 2028s to UYP39.79bn, or the $2bn-equivalent ceiling it had set for itself. In a final part of the liability management operation, Uruguay will spend EUR138.2m ($182m) to buy back old euro-denominated bonds due 2012-2019 that pay between 6.875%-7.000%, and $407.6m to buy back old dollar-denominated bonds due 2013-2017 that pay between 7.000%-9.250%. The sovereign will pay various prices in a tender also closed Friday. The dollar and euro buybacks will be funded using cash from the 2028 sale. Citi and HSBC managed both the exchange offer and the new issue. The 2028s are rated Ba1/BB+.
Posted inDaily Brief
US Operator Buys Telefonica Mexico Towers
American Tower, a US operator of telecommunications towers and sites, has agreed to acquire 2,500 telecom towers in Mexico from Pegaso PCS, the Mexican subsidiary of Spain’s Telefonica, for $500m. Neither party involved in the deal hired financial advisors, and American Tower used its own in-house M&A group, say a spokeswoman for American Tower. Stearns declined to provide any valuation multiples for the purchase. The company said in a statement that the tower acquisition doubled its portfolio of assets in Mexico, a bet on the future growth of the telecom business in that country.
Posted inDaily Brief
Vale Set for Fertilizer Delist
Vale has acquired almost 100% of the outstanding shares in Vale Fertilizantes, spending BRL2.078bn ($1.41bn) in a public buyback offer and preparing the way for the eventual delisting of its fertilizer unit. Vale acquired 211,014, or 83.8%, common shares in Vale Fertilizantes, and 82.9m, or 94.0%, preferred shares in the unit, paying a previously announced price of BRL25.00 each. Vale now holds, through its Mineracao Naque vehicle, 99.99% of the total common shares and 98.09% of the total preferred shares of Vale Fertilizantes. Morgan Stanley managed the process. The Brazilian miner plans to group the Vale Fertilizantes assets with other related businesses that it can then re-IPO in 2012.
Posted inDaily Brief
Vapores Sets Capital Raise Price
Chilean shipping and ports company Compania Sudamericana de Vapores has set a $0.2045 per share price for its planned $1.2bn capital increase. Vapores is preparing to issue 5.87bn new shares, indicating a 10% discount from the average price of the stock on December 7. The preferential stage of the capital increase is scheduled to begin on December 19 and will end on January 17. Controller Quinenco, the vehicle for the Luksic family, is contributing $1bn to help turn around the struggling shipper.
Posted inDaily Brief
Brazil Pharma Readies Share Split
Brazil Pharma is preparing a one-for-two share spilt, and will put the matter to a shareholder vote December 23. The BTG Pactual-controlled retail pharmaceutical operator raised BRL465.75m ($293m) in June, in one of the last IPOs in Brazil this year.
Posted inDaily Brief
CFE Puts Local Trade to Bed
Mexico’s Comision Federal de Electricidad (CFE) has sold a MXP1.358bn in ($100m) floater in the domestic market. The 4-year notes priced at TIIE+35bp, in line with guidance of TIIE+ 35bp-40bp and 10bp wide of initial price expectations. Demand was heard at 1.3x, with participation coming from pension funds, bank treasuries and mutual funds. The deal wraps up the last issuance under the MXP3bn Fideicomiso de Administracion de Gastos Previos trust. The state-owned utility uses the Bancomext-guaranteed trust to pre-fund subcontractors’ authorized expenses under a special infrastructure program that cannot be reimbursed before project completion. Ixe managed the transaction, rated AAA on a national scale. CFE had previously visited the domestic market in September when it raised MXP7bn from a reopening of its 2014 and 2020 bonds, after seeing more than MXP13bn in demand.
Posted inDaily Brief
Hospital Targets BRL Bond
D’Or Sao Luiz, a Hospital chain controlled by BTG Pactual, plans to raise BRL650m ($360m). The 2018 bonds will pay the DI rate plus up to 2.3%. Proceeds are to be used for acquisitions and to repay old debt. BTG, Bradesco, Banco do Brasil and Santander are managing the sale.
Posted inDaily Brief
LatAm Gains Help Offset EM Equity Outflows
LatAm equity funds booked inflows of $48m in the week ended December 7, according to EPFR. This helped offset losses in other regions which contributed to $159m of outflows for EM equity funds during that period. In terms of performance, EM equity, fell 2.37% during the week ending December 8, and is down 18.45% on the year, according to Lipper. Similarly, LatAm funds lost 1.49% on the week, and have dipped 20.06% ytd. Global small and mid-cap funds were up 1.79% on the week, but are down 12.70% ytd.