BAML is advising Drummond on the sale of its Colombian assets, according to a source familiar with the situation. The US-based mining company is heard to be talking with Xstrata, a Swiss commodities trader, according to a banker away from the deal. The assets could be worth $8bn, according to press reports.
Yearly Archives: 2011
Posted inDaily Brief
Barclays Loses Another DCM Banker
Nicolas Bendersky has left Barclays Capital’s DCM team in New York, according to people familiar with the move. The departure is understood to be part of cutbacks across several areas in the bank. His move came the same week as the departure of the head of LatAm DCM, Carlos Mauleon. Mauleon was with the firm 10 years and his departure caught many rivals off guard. It is unclear if either will resurface at another firm. Ros Stephenson will continue to have ultimate responsibility for LatAm investment banking, according to a source within the firm. She is head of corporate finance at Barclays and a member of the firm’s investment banking executive committee. Mauleon reported to her.
Posted inDaily Brief
America Movil Targets Loan Refi
America Movil, the Mexican mobile phone company, is heard looking for a loan for between $1bn and $2bn. The loan is to refinance existing loans that are maturing, and for additional financing. Market participants expect the loan to have a 3-year maturity. The deal is said not to be event driven. The cash-rich telecom is rumored to be surveying Eastern Europe for possible acquisitions.
Posted inDaily Brief
Argentina’s Naranja Set to Place Bond
Tarjeta Naranja, the Argentine credit card company owned by Banco Galicia, plans a $200m 2017 bond, according to investors. The B rated credit is expected to issue today or tomorrow. After meeting buyers on 3 continents, it has settled on a bond amortizing in 3 equal installments in years 4, 5, and 6. Proceeds are marked for general corporate purposes. BAML and Deutsche are managing. Tarjeta Naranja has issued several times in Argentina’s domestic market. Its most recent foray was for $50m in dollar-denominated 2010 and 2011 bonds. It is one of several Argentine issuers expected in the early part of this year, a list which also includes real estate firm Raghsa, cable company Cablevision, and city of Buenos Aires and the Neuquen province.
Posted inDaily Brief
Daycoval Continues Brazil Bank Spree
Brazil’s Banco Daycoval has raised $300m from the sale of 2016 bonds, less than some had expected. The BB bond priced at 99.472 with a 6.250% coupon to yield 6.375%, the tight end of 6.500% area guidance. Proceeds will be used to extend the bank’s funding structure and to enable new business generation. Goldman Sachs, HSBC and Standard Chartered managed the sale. Daycoval is the third from the sector to issue since the Banco Panamericano crisis drew $450m in orders, according to a banker on the sale. Issues from Cruzeiro do Sul, Banco Safra and now Daycoval have demonstrated that demand for the mid-tier is still there, through Daycoval was heard initially looking for as much as $500m.
Posted inDaily Brief
Santander Mexico to Issue MXP5bn in Bonds
Santander Mexico will issue up to MXP5bn in 3-year bonds, tentatively scheduled to price January 28, according to a banker on the deal. Santander and Banamex are joint leads. The proceeds will be used to expand the banks lending portfolio. The bonds are rated AAA on a national scale.
Posted inDaily Brief
Second Mexican REIT Filed
Construtora Planigrupo has registered to sell a Fibra, or Mexican REIT, becoming the second entity to do so. The developer and operator of commercial centers plans to create a trust to acquire and develop new projects, according to regulatory documents. It has set a target of MXP2.75bn for the transaction, to be managed by Ixe, with Goldman Sachs as structuring agent. It does not indicate timing for the transaction. US real estate-focused private equity investor Walton Street is co-investing $28m, according to the documents.
Posted inDaily Brief
Advent Sheds Cetip Shares
Advent International has sold part of its stake in Brazilian fixed income and derivatives depository and clearing house Cetip. The sale of 15.5m shares at BRL23.61 per share netted the private equity manager BRL364.9m, according to Dealogic data. The price represents a 0.3% premium to the previous BRL23.55 closing price. The stake represents 6% of Cetip, and leaves Advent with 10%, Cetip says. Credit Suisse handled the sale, according to Dealogic.
Posted inDaily Brief
Vale Fires Up Bank Market
Vale has put out an RFP for a multi-tranche syndicated loan, which is expected to raise $3bn-$5bn. The loan is expected to include a 3-year and a 5-year tranche. As many as 20 banks have been asked to submit proposals for the deal, which is heard to be structured as a revolver for working capital purposes. Market participants expect banks to be very competitive and say a new benchmark could be set. “Banks are going to be very aggressive, especially competing for the 5-year, and if it is too tight this will not be a good way to start the year,” says one syndicated loans banker. “Everyone will want to be part of the transaction, and Vale will probably not even pay underwriting fees,” adds another. While market participants say Brazilian, Japanese and US banks are able to bid aggressively, some European banks with higher funding costs may choose not to participate. The deadline for the submission of proposals is this week, according to bankers. The deal is apparently not event related. Vale on Friday denied rumors it is bidding for or negotiating with a fertilizer company. The Brazilian miner has been the subject of speculation it would acquire Canadian fertilizer company Potash Corp since August. US-based equity research firm Dahlman Rose has said Vale is more likely to bid for US-based Mosaic, another fertilizer company. Vale was rumored to have considered a $25bn bid for Mosaic in 2009.
Posted inDaily Brief
HY Debut Lands at Wide End
Grupo Virgolino de Oliveira (GVO) has raised $300m in its debut dollar bond transaction, getting maximum size and pricing at the wide end of guidance. The B3 rated 2018 NC4 priced at par with a 10.50% coupon, to yield at the wide end of 10.25%-10.50% guidance and 10.0%-10.5% whispers. The issuer drew more than $700m in orders, according to bankers on the deal, with mostly EM and US high-yield focused investors. The price level seemed to fit, with the bond up 0.50-0.75 point Friday afternoon, according to traders. It had been heard looking for $200m-$300m with rating agencies seeing a $250m sale. “It’s an attractive yield and the strength of the company is predicated on the co-operative being strong and being able to provide liquidity, says a London-based EM investor. However, he notes, it is the peak of the sugar cycle and buyers would be betting on continued strong prices. GVO is a member of the Copersucar cooperative, and investors say this helps mitigate concerns about price volatility and small issuer liquidity in a commodity exporting business. Copersucar acts as a guaranteed buyer for co-op members’ production, reducing some of the risks of the commodities market. The company was founded in 1921 and operates 4 mills in Sao Paulo state. Proceeds are marked for repaying outstanding debt and for general corporate purposes. BTG Pactual, Credit Suisse, Itau and Santander managed the sale.