Brazil’s BR Malls is out with guidance of 8.75% on a new perpetual NC5 bond, according to investors. The BB/BB minus shopping center operator is set to conclude US, Asian and European investor meetings Thursday, with a deal to follow. BR Malls has not indicated the size of the issue. Investors expect it to raise around $200m, given the volume of recent perpetuals. BTG and Deutsche Bank are managing the transaction. In the last perpetual of 2010, BB minus/Ba3 General Shopping, in the same sector as BR Malls, got a yield of 9.75%. Developer Cyrela met investors in November, but elected to wait on a possible perp and is heard to be still considering a deal. BR Malls’ last dollar bond was a $175m perp done in November 2007 through Citi and UBS.
Yearly Archives: 2011
Energisa Plans Perpetual Bond
Energisa is planning to issue a perpetual NC5 bond, in what would be its first USD transaction. The Brazilian energy holdco plans to meet investors in the US, Europe and Asia Thursday through January 19. BAML, Morgan Stanley and Santander are managing the sale. Proceeds are marked for general corporate purposes. Energisa is the holding company for 5 electric distributors in the states of Paraiba, Sergipe, Rio de Janeiro and Minas Gerais, and has been a frequent issuer in Brazil’s local bond market. After several issuances from Brazilian issuers last year, BR Malls plans to test the waters for perpetual issuance with a new NC5 as soon as this week.
CFE Local Tap Takes Time
CFE’s dual-tranche deal for up to MXP9bn will price on January 19, according to a banker on the deal, and is expected to be the first deal of the year in the Mexican local market. The deal had initially been expected on January 11. It is a retap of its 4-year floating and 10-year fixed rate bonds issued in December of last year. Pricing has not yet been determined, adds the banker. One investor expects pricing to be in line with the original bond issue. “The first deal was only last month, since which market conditions have remained the same, so I would expect neither a price tightening or widening,” he says. BBVA Bancomer, Banamex and ING are joint leads on the sale for the federal electricity company. The bonds are rated AAA on a national scale. Proceeds will go toward working capital and to refinance existing debt. The original deal priced December 2. The 10-year tranche was for MXP9.0bn, after total orders reached MXP14.6bn. The bonds priced to yield 7.96%, or Mbonos plus 120bp, in line with guidance, according to bankers on that sale. The 4-year was for MXP5.0bn, on MXP8.4bn in demand. That tranche priced at 26bp over TIIE, tight to guidance of 30bp.
Bladex Closes Syndicated Loan
Bladex, the Panama-based LatAm multilateral bank, has closed syndication on a $130m 3-year loan, according to a banker with knowledge of the transaction. The transaction was launched in December, through Mizuho, after investor meetings in Taipei, Tokyo and Hong Kong, and was syndicated to Asian banks. The multilateral had originally planned to borrow $75m, but expects to sign for $130m as a result of strong demand, the banker says. Commitments are heard to have come from 10 banks. Signing is expected on 18 January, adds the banker.
Mexico Gets 2 IDB Loans
The IDB has approved 2 loans to the Mexican government worth a total of $600m. One loan, for $350m, will finance improvements in the physical infrastructure of 20,000 schools and the other, for $250m, will help expand water service to rural communities. Mexico’s finance ministry says both loans have terms of 25 years with a grace period of 4 years and a rate based on Libor. A ministry spokeswoman does not disclose the actual interest rate.
Falabella Beefs Up Investment Plan
Chilean retailer Falabella has beefed up its 2011-2015 investment budget to $3.5bn from $1.0bn. The retailer plans to build 215 stores and add 16 shopping malls, ending the year 2015 with 457 stores and 35 malls in Chile, Colombia and Peru. “This is positive news for the company as it strengthens its expected growth for the next 5 years, which we think could help increase its share price,” says local brokerage Bice Inversiones. BCI increased Falabella’s price target for the end of 2011 to CLP6,150 from CLP5,850. Falabella’s shares were up 0.30%, closing Tuesday at CLP5,027 locally.
Santander Returns With Chile Floater
It was Santander Chile’s turn to tap the bond markets Tuesday, raising $500m in the year’s first LatAm floating rate deal a day after the Spanish bank’s Brazil unit raised $650m in a 2016. The Chilean bank popped out in the market Tuesday morning to continue the trend of issuing a 5-year. The AA minus 2016 priced at par Libor plus 160bp. There had been no guidance on the bond, according to bankers on the deal, who decline to indicate book size. “Banks should borrow as much now as they can get their hands on,” says a London-based EM portfolio manager. He adds that securing external liquidity makes sense in the face of uncertainty about the future of capital controls in Brazil and other countries. Proceeds will help replenish the bank’s capital. JPMorgan and Santander managed the sale. The bank was the region’s last floating-rate issuer, in September, when it issued a $200m 2011 bond at Libor plus 100bp, as part of a $1.2bn 3-tranche deal that also included fixed USD and global CLP portions. Santander Brasil and Bancolombia have each brought 5-year bonds this year, with Banco Cruzeiro do Sul set to land one as soon as today.
Cencosud Set for Bond
Cencosud is set to price a new 2021 bond as soon as today, having given guidance of UST plus 237.5bp area, according to investors. The Chilean retailer, making its dollar debut, is expected to issue up to $1bn, and was heard having built a book of about $2bn late Tuesday. There were no indications of a global-peso tranche, a possibility heard considered earlier in its roadshow. Cencosud completed investor meetings Tuesday, managed by Deutsche, JPMorgan and Santander. “This is a story on domestic growth in LatAm, and specifically entry into Brazil,” says an East Coast-based EM investor eyeing the deal. There are no direct comps, investors say, though some point to other recent Chilean triple Bs, such as Baa2/BBB/BBB+ Arauco. The pulp maker got UST plus 245bp in September on a $400m 10-year, and now trades at around UST plus 155bp.
Cruzeiro Sets Bond Target
Banco Cruzeiro do Sul has put out 8.5% area guidance on a new 2016 bond, set to price as soon as today. This level compares to the 8.0%-8.1% yield that the bank’s 2015 bond trades at, according to investors. The size of the issue has not been indicated, though buysiders expect a deal less than $500m, based on the bank’s previous issuance. The Ba2/BB minus payroll discount loan specialist held an investor call Friday, as it looks to convince investors that the problems seen last year at peer Banco Panamericano are not characteristic of the mid-sized Brazilian banking sector in general. Barclays, BCP and UBS are managing the sale. Cruzeiro’s last deal was a $400m 2020 Tier 2 bond, sold in September at a 9% yield, through the same 3 banks.
Argie Gaming Plays for Dollar Bond
Hillview Enterprises, the holdco for Argentine Gaming Group, is preparing a $100m 2016 bond, according to investors. The B3 issuer, making its debut in the dollar market with the RegS-only deal, plans to close next week. Proceeds are marked for refinancing debt, capex, and general business purposes. BCP Securities is managing the deal. Panama-based Hillview is the holdco for AGG, whose main assets are the Bingo Avellaneda, Bingo Alto Avellaneda and Bingo Florencia Varela casinos, all in greater Buenos Aires. It acquired AGG in 2007 for $101m. After a successful $300m debut dollar bond in December from Aeropuertos Argentina, bankers say they are hoping to bring more dollar bond debutants in order to feed investor interest in new names and higher-yielding credits.