Laboratorios Andromaco has filed a shelf to sell domestic bonds in Chile. The maker of dermatological and other pharmaceutical products will be able to issue off a UF2m program with tenors of up to 10 years and off a UF2m program with maturities of up to 30 years. It does not name a lead manager. Proceeds are marked for investments, working capital and debt refinancing.
Yearly Archives: 2011
Posted inDaily Brief
Citi Names Brazil Originations Head
Citi banker Mariano Gaut has been named head of Brazil capital markets origination at the US bank. The move comes as Citi tries to make its mark in the region’s largest economy after recently hiring Andre Kok as managing director and head of global banking for Brazil. Gaut comes from Citi in the US where he was head of the bank’s equity-linked business. He will move to Sao Paulo in his new role and will work alongside the Brazil global bank team led by Kok. Gaut will report to John Chirico and Richard Zogheb, co-heads of CMO. Meanwhile, in New York, Chris Gilfond and Mario Espinosa will continue to co-head LatAm DCM, while Richard Blackett and Juan Carlos George will do the same for LatAm ECM. Both New York teams will continue to direct strategy across LatAm, including Brazil.
Posted inDaily Brief
Colombia’s Popular Preps Local Foray
Colombia’s Banco Popular is set to issue COP250bn-COP400bn ($140m-$225m) in local bonds today. The bank is able to select from 1.5, 2 and 3-year tenors set to the IBR rate, and 4-year bonds indexed to the IPC. Proceeds will support the bank’s capital base. Popular is managing the sale, rated AAA on a national scale.
Posted inDaily Brief
Elektro Prices Domestic Bond
Elektro has completed a BRL300m ($190m) bond sale in Brazil’s domestic market. The utility and AEI subsidiary secured a BRL150m 2016 tranche to pay the DI+0.98%, coming in under a 1.12% ceiling. A BRL150m IPCA-linked 2018 tranche pays a fixed 7.68%. Both portions feature a 1-year grace period and amortize in equal parts in the final 3 years. Proceeds are going to repay existing debt and for working capital. Banco do Brasil and HSBC managed the sale, done under the rule 476 restricted format.
Posted inDaily Brief
Mexico Narrows Water System Bidding
After opening financial bids for the El Zapotillo-Leon water system contract, Mexican water authority has narrowed the bidding to 2 finalists. The first consortium is made up of Abengoa Mexico, Befesa Agua and Abeinsa, and the second includes Korea Water Resources, and units of Samsung and Techint. The contract to build and operate the water transfer system serving Guadalajara, Jalisco and Leon, Guanajuato requires an estimated investment of MXP5.36bn ($460m). A third consortium led by Acciona was disqualified on technical requirements.
Posted inDaily Brief
Spanish Gamer Takes Control of CIE
Spanish gambling group Codere has agreed to increase its stake in Mexico’s Corporacion Interamericana de Entretenimiento by 35.8% for MXP2.68bn ($217m). The deal will give Codere 84.8%, up from 49%, of the troubled entertainment company, which is in need of funds to repay debt. Codere would assume MXP1.2bn in CIE debt upon the close of the transaction, still subject to Mexican regulatory approval. The Mexican horse track and entertainment center operator has been selling assets in the region and restructured about MXN5.56bn in holding-company debt in 2009, pushing out maturities by 5 years. CIE did not use an advisor. Codere, which has operated in Mexico for 13 years, is said to become the largest gambling operator in Mexico through this purchase. It also operates in Argentina, Brazil, Colombia, Panama y Uruguay.
Posted inDaily Brief
Desenvix Gets Norwegian Boost
Brazilian renewable energy developer Desenvix, unable to complete an IPO earlier this year due to market conditions, has received a $440m investment from Norwegian renewable energy company SN Power. Hydroelectric power specialist SN takes a 40.7% position in Desenvix, an arm of Brazilian engineer Engenvix. The deal substitutes the capital that Desenvix had hoped to raise by floating, though it still would consider an IPO 2-5 years from now, an investor relations official says. Desenvix has a portfolio of renewable energy assets with 162MW in operation, plus 1,776MW under construction or in development. The transaction follows SN’s purchase of Brazilian energy trader Enerpar, as it expands in the market. Neither SN Power nor Desenvix used advisors. Regulatory approval is expected within 6 months. SN is a joint venture between Statkraft and Norfund specializing in emerging markets and has operations in Asia, Latin America and Africa.
Posted inDaily Brief
EEB Heard Mandating Banks
Colombian utility Empresa de Energia de Bogota (EEB) is heard mandating Deutsche Bank and Santander for an international bond to help fund an upcoming call on its $610m 8.75% 2014s. The NC4 senior unsecured notes were issued in 2007 to partially pay down a bridge loan used to finance the $1.5bn acquisition of natural gas distributor Ecogas. The bonds are callable in October at 104.375, at 102.88 in 2012 and at par in 2013 and after. The bond also carries a make-whole call prior to year four at 75bp and a change of control put at 101.00. EEB bonds were trading Tuesday afternoon at 2.81% on yield-to- worst basis and at a price of 104.35-105.5. ABN AMRO, now RBS, was the sole bookrunner on the last issue with BBVA, Caylon and Mizuho working as joint lead managers.
Posted inDaily Brief
ENA Ventures Forth In Quiet Market
Panama’s Empresa Nacional de Autopista (ENA) emerged with official guidance Tuesday on a dual-tranche $395m issue, offering investors between high 100s to mid 200s over the Panama sovereign. Books were heard to be covered by Tuesday and went subject late afternoon ahead of expected pricing today. The deal comes amid continued uncertainty in the broader markets, leaving some accounts disinclined to participate in what is a relatively small and illiquid structured trade. Indeed the borrower is treading a somewhat lonely path this week in what has been a quiet LatAm new issuance market. Still unsteady markets haven’t deterred US high-grade names from tapping in recent days and this bodes well for the BBB minus/BBB rated ENA bonds. And despite a dearth of true comps, other investors have expressed satisfaction with the credit given the decent pick-up over the Panama 5.25% 2020s, which have been trading in the 3.54%-3.42% area. That compares to official guidance of 6% area on a $170m A tranche, with an average life of 8.40 years and a final maturity of 2025, and 5.25% area on a $225m B tranche, with a 4.59-year average life and 2019 maturity. The 144/Reg S notes will be listed on the Panama Stock Exchange, with collateral taking the form of collections from the Corredor Sur toll road and shares of ENA. Tranche A has a make-whole call at Treasuries + 50bp. Proceeds are to be used to refinance $150m of 6.95% amortizing 2025s that helped finance the Corredor Sur tollroad covering 19.5km of Panamanian highway. HSBC and Global Bank are leads.
Posted inDaily Brief
Guatemala Sends RFPs for Foreign Bond
Guatemala has sent out RFPs to raise up to $500m in the international bond markets through a 144A/RegS offering, with submission deadlines set for August 26. But bankers are resigning themselves to competing on a fee basis as is standard practice in many Central American countries. “[It] will be a typical point-based antiquated RFP a la El Salvador that heavily favors the lowest fee above all else,” said one banker. Competition for such mandates have stirred up its fair share controversy, most recently after Deutsche Bank won sole lead spot on an El Salvador deal late last year with a 1bp fee. Proceeds from the Guatemala trade are expected to refinance its maturing $325m 10.25% bond due November 2011. This comes after S&P recently revised its outlook on Guatemala’s BB/B foreign currency rating to negative from stable. The rating agency noted that political polarization is hindering fiscal reform at a time when the country is suffering from low tax revenues combined with an increasing interest burden.