Vopak will exercise its tag-along rights to sell its 20% stake in Bahamas Oil Refining Company (Borco) to Buckeye Partners. Vopak, a Dutch tank storage service provider, will receive approximately $168m in cash and $100m in equity in the Texas-based pipeline and storage terminal operator. Buckeye was advised by Barclays. In December, Buckeye announced it would acquire 80% of Borco from First Reserve for $1.36bn. Buckeye says it will finance the acquisition with the same facilities it used for its initial purchase. This includes a $650m 10-year senior note offering with a 4.875% coupon, and a senior unsecured bridge facility of up to $775m through Barclays, SunTrust Robinson Humphrey and SunTrust Bank.
Yearly Archives: 2011
Posted inDaily Brief
Sabesp Raises BRL600m
Sao Paulo water utility Sabesp has raised BRL600m in 1.5-year bonds in Brazil’s domestic market. The issue pays DI plus 0.65% until March, DI plus 0.75% until August, DI plus 0.85% until March 2012 and then DI plus 1.25% until maturity in August 2012. Banco do Brasil, HSBC and Santander managed the sale, and bought it. Proceeds will repay old debt. Sabesp is also set to sell the third and final installment, of BRL275.37m, of a BRL826m issuance of 11-year bonds to BNDES. Proceeds will fund Sabesp’s BRL1bn investment plan, including 5 projects to build and upgrade waste systems, and make water systems more efficient and less energy-intensive. The company is rated A+ on a national scale.
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Even Costrutora Preps Local Issue
Brazilian developer Even Costrutora e Incorporadora is preparing to sell BRL250m in domestic bonds, it says. A 4-year tranche would pay the DI rate plus 2.1%, and amortize equally in the third and fourth years. A 5-year piece would pay the DI plus 2.3%, and have equal amortizations in years 3, 4, and 5. Even is raising funds to repay debt and purchase of new funds. Itau is lead manager on the deal, with Santander as bookrunner, according to an investor relations official.
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Mexican REIT May Land in February
Mexico’s Grupo E could come to market with the country’s first REIT as soon as February, according to a banker away from the trade. The REIT, known as a Fibra locally, is expected to be sized around $500m equivalent, the banker says. Regulators approved the asset class for sale in Mexico’s equity market in 2010. The vehicle, known as Fibra Uno, consists of 12 industrial, commercial, office, and mixed use properties located throughout Mexico and totaling 484,000 square meters. Grupo E consists of 60-70 owners, led by the El-Mann and Attie families. Proceeds from the sale will be used to fund the acquisition of 5 additional commercial and mixed-use properties totaling 189,000 square meters. In accordance with Mexican regulations, the trust will distribute 95% of its income quarterly. Santander and Protego are managing the sale.
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Colombian Utilities Consider Global Pesos
Colombian utilities Emgesa and Empresas Publicas de Medellin (EPM) are considering the issuance of global peso bonds. Both companies are currently roadshowing. Emgesa is considering issuing $400m equivalent in 10-year global peso-denominated bonds, according to S&P. The bonds would be payable in dollars, the agency says. The company may also do a dollar bond instead, swapping back to COP. The power generation company, controlled Colombian energy company Empresa de Energia de Bogota, is meeting investors in the US and London through Wednesday. Citi and Deutsche are managing that sale, rated BBB minus. Proceeds are expected to be used to help finance construction of the $840m 400MW Quimbo hydroelectric plant. EPM is also meeting bond investors this week and heard considering issuance in both USD and COP, according to investors following the tour. On an officially “non-deal” show, it has not yet defined an amount or maturity. Baa3/BBB minus EPM is also visiting the US and London, finishing Thursday, with BAML and Barclays running that show.
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Panama Sets Samurai Level
Panama is out with Libor+48bp talk on a JPY41.5bn ($502m) 10-year, the sovereign’s debut Samurai bond, according to people following the transaction. The deal is expected to close as soon as today or tomorrow. The sovereign met Japanese investors in November, with a view to closing this month. As with previous Samurai issuance from Mexico and Colombia, the bond features a guarantee from JBIC, the Japanese development bank. Daiwa and Mitsubishi are managing the sale. Mexico was the region’s most recent sovereign yen issuer, selling JPY150bn 2020 with a 1.51% coupon, or yen Libor plus 50bp, in October.
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Iguatemi Plans Brazil Bond
Iguatemi Empresa de Shopping Centers plans to sell BRL300m in 2016 debentures, it says. The yield will be based on DI, with a spread of up to 1.55%. The bonds amortize equally in the fourth and fifth years. Investor meetings will last until February 4, with closing March 11. Itau is the lead coordinator and BTG Pactual the bookrunner on the deal, which is not yet rated. Proceeds are marked for working capital and possible acquisitions.
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ChinaTel Eyes LatAm Expansion
US-based telecom ChinaTel is looking for opportunities to expand in LatAm, particularly in CentAm and the Caribbean, says Ryan Alvarez, vice president of strategic planning. “We are looking at developing countries that need infrastructure for internet access,” he tells LatinFinance. ChinaTel, which is investing $48m in Peru over the next 7 years via its local subsidiary, Perusat, has $640m available to expand in Peru and other countries. In May, ChinaTel entered into a stock purchase agreement with the Isaac Organization, a San Diego-based investment firm with about $5bn in assets under management, which is providing the funding. The stock purchase agreement is priced at $1.50 per share, which would leave the Isaac Organization with 49% ownership in ChinaTel if the entire $640m is drawn. Alvarez says expansion will likely come in the form of joint ventures with companies that hold spectrum licenses. He adds that ChinaTel is in talks with some potential partners, but did not identify them, citing confidentiality agreements. The company is working with an in-house M&A team to identify opportunities. ChinaTel was founded in 2008 through a reverse merger between US-based Mortlock Ventures and Trussnet USA, both Nevada corporations. In March 2009, ChinaTel acquired a 49% stake in Chinacomm for $196m. That same month it acquired 95% of Perusat for about $2.8m and has decided to seek more opportunities in LatAm, particularly in areas where penetration of broadband services is low, Alvarez says. It is also expanding in China, deploying high-speed internet connections in 29 Chinese cities with local peer Chinacomm.
Posted inDaily Brief
Sonae Sierra Shops IPO
The Brazilian unit of shopping mall operator Sonae Sierra has launched a roadshow for a February 1 IPO, set to raise BRL460m-BRL660m. It plans to sell 21.7m primary shares at BRL21.5-BRL26.5 each, with the option of a 15% greenshoe and 20% hot issue. Sonae Sierra Brasil launched after originally filing for an IPO in March 2010 and postponing later last year. It is raising funds for new developments, expansion of existing malls and purchase of new land. Credit Suisse is lead coordinator, with Itau and JPMorgan as bookrunners. Portugal-based Sonae Sierra owns 51 shopping centers in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil. In Brazil, it operates 10 malls with 3 more under construction. Sonae Sierra Brasil posted BRL78.5m in Ebitda in 2010 through September, up from BRL51.4m in the corresponding period of 2009, and BRL75.8m in the full-year 2009.
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DomRep Banks’ Outlook Raised by Fitch
Fitch has raised the outlook of several banks in the Dominican Republic following a similar action on the sovereign. Fitch raised the long-term foreign currency rating outlooks for the following issuers to positive from stable: Banco Popular Dominicano (AA minus), Banreservas (B) and BHD (B). Fitch recently boosted the sovereign’s B rating to positive from stable.