Chile’s AES Gener could price a new 5.25% 2021 as soon Thursday as it looks to retire $400m in outstanding 7.5% 2014s. The electricity provider is offering the 2021s or cash to holders of the 2014s. Investors who opt for new bonds will receive $1,000 in 2021s plus $150 in cash per $1,000 principal of existing bonds if tendered prior to July 27. Thereafter, they will receive new bonds plus $110 in cash as long as they tender before the final deadline of August 10. Holders choosing cash will get $1,130 per $1,000, and have only until July 27. Gener is also separately tendering for its local 8.0% 2019 bonds in a domestic offer. Fitch has put an up to $475m size on the new issue after rating it BBB minus. The offer is contingent upon a minimum $200m overall acceptance to the USD tender, as well as Gener successfully issuing enough new 2021s to cover costs associated with the cash portion of the USD bond tender and the local bond tender. Citi and Deutsche Bank are acting as dealer managers.
Yearly Archives: 2011
Brazilian Oil Co Gets Local Funds
Petra Energia, a Brazilian oil producer in the Amazon region, has completed the sale of BRL320m ($209m) in 2013 debentures in the domestic market. The bonds pay interest at the DI+6.25%. BTG Pactual managed the sale, done under the rule 476 restricted format. Petra owns and operates oil reserves in the Parnaiba basin.
Fitch Ups Itabo to B,
Fitch has upgraded Dominican utility Empresa Generadora de Electricidad Itabo (Itabo) to B from B-, while also revising the outlook to positive. The agency cites the recent ratings revision for the sovereign and the positive impact of policy changes. “Over the past year, the Dominican Republic government has implemented changes aimed at strengthening the operational and financial viability of the electricity sector in the country,” it says.
GBM Seeks Domestic Financing
Grupo Bursatil Mexicano, the Mexico-based brokerage firm, plans to issue up to MXP1bn ($86m) in floating rate bonds on August 18. Proceeds will be used to rollover about MXP200m in maturing bonds carrying rates of TIIE+50bp and +25bp, as well bank credit lines. The self-led bonds have not been rated. In May, GBM announced plans to raise funds for infrastructure investments through a certificado de capital de desarrollo (CCD).
Minerva Set for Convert Pricing
Brazilian meatpacker Minerva is expected to announce today the price for the sale of BRL300m ($190m) in 2015 convertible debentures following the closing of bookbuilding Tuesday. The company is looking at a reoffer price of between 97.00-103.00 of face value, with the interest rate and conversion price range already established. In what is being called the Brazilian market’s first-ever public sale of mandatorily convertible debentures, Minerva will pay interest at 100% of DI, with the minimum and maximum conversion prices set at BRL6.00 and BRL8.00, respectively. The issuer elected to price the bonds at the premium or discounts, as regulators only wanted investors bidding on one value during the sales process. The company’s shares closed at BRL5.69 Monday. Proceeds are marked for the repayment of existing debt, and for working capital. Minerva is rated.BBB minus on a national scale. Goldman Sachs, Deutsche Bank and Banco do Brasil are leads. Separately, following the convertible bond, Minerva plans to launch a tender for some BRL150m notional value in stock warrants issued as part of a 2009 capital raise.
Petrominerales Plans Bogota Listing
Colombia’s Petrominerales has received approval to list its shares on the Bogota stock exchange. The oil producer is already listed in Toronto, and does not plan to raise new funds in association with the listing. It is doing so to offer better access to Colombian investors. Petrominerales shares closed Tuesday at CAD31.94 ($33.84).
Renner Closes BRL300m Bond
Lojas Renner has raised BRL300m ($188m) through dual-tranche issue in Brazil’s local bond market. The retailer’s BRL215.1m 2016 amortizes equally in years 4 and 5 and pays the DI+1.1%, coming in under a DI+1.35% ceiling. A BRL84.9m IPCA-linked 2017 pays a fixed 7.8% rate and amortizes equally in years 4, 5 and 6. Renner is raising funds to optimize its capital structure, with a view to having sufficient liquidity to carry out its organic expansion plans. Santander managed the sale, rated AA+ on a national scale. The transaction is one of the few Brazilian domestic bond deals done in the rule 400 format, rather than the restricted-format rule 476 provision, which have accounted for the great majority this year.
Senda Launches Consent Solicitation
Mexico’s Grupo Senda Autotransporte has launched a consent solicitation to amend terms on its 10.5% 2015 bonds. Senda wants to loosen a few of the restrictions that limit its ability to take on additional debt, and is offering holders $1.25 for each $1,000 principal amount. The offer expires August 5. JPMorgan is managing. The bus company sold the bonds in a $150m sale in 2007 through Credit Suisse.
Transener Prints New 2021
Argentine utility Transener has priced its new 9.75% 2021 at 95.405 to yield 10.5%, helping it raise $53.1m in cash to help fund a buyback of its existing 2016s. At the same time, it has issued another $46.9m in new 2021s, which were exchanged existing debt. Investors were allowed to swap outstanding bonds for the new 2021s par for par, and receive an extra $30 for each $1,000 if tenders are submitted by the early bird date of July 25. Alternatively, they could cash in the existing bonds and receive $910 for each $1,000 in principal, plus another $90 in early bird premiums. The company is also seeking consents to amend terms and conditions on the outstanding bonds. The exchange offer expires on August 9. The 2016s were originally issued in 2006 with a $220m size and priced at par to yield 8.875%. Citigroup and Deutsche Bank led that transaction and are also acting as leads on this occasion.
Uruguay Farm Developer Pulls IPO
Uruguay’s Union Agriculture Group postponed a $200m-plus IPO scheduled to price Tuesday night, according to bankers on the deal, with more news about the timing expected today. If the deal is sidelined, it will become the latest in a string of LatAm issues that have been pulled and follows a jettisoned effort last week from Brazilian sugar cooperative Copersucar. Union had been aiming to sell 14.3m shares at $13-$15, plus a possible 15% greenshoe, and become the first IPO from Uruguay since 2006. Union, which acquires underutilized farmland in Uruguay and develops it for resale, was seeking funds for land acquisitions, and possibly for debt repayment and working capital. Credit Suisse and JPMorgan were the leads.