Via Bahia Concessionaria de Rodovias has filed to become a public company in Brazil. The operator of 680km of toll roads in the state of Bahia has asked for the initial designation that allows for public debt and equity offerings, though it does not indicate specific plans. Increasingly selective Brazilian equity investors have noted interest in seeing more toll road IPOs as they want to buy into companies capable of consistently generating cash and able to cope with inflation.
Yearly Archives: 2011
Posted inDaily Brief
Cabei Poised to Close Loan
The Central American Bank for Economic Integration (Cabei) is poised to close a $100m 3.5-year dual-currency loan this week through MLAs and bookrunners Mizuho and HSBC. The 3.5-year bullet loan is split into a $40m-equivalent yen tranche and a $60m dollar portion. Five Asian banks are heard to be participating on a loan that comes with an all-in margin of around Libor+160bp.
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Colombia Set for Rates Decision
Colombia’s central bank is scheduled to decide today whether to alter the 4.75% benchmark interest rate. An eventual raise in the rate is expected, but many analysts predict a hike next year rather than what would be a second consecutive increase today, in its final meeting of the year.
Posted inDaily Brief
Cosentino Gets Argie Finance Job
Adrian Cosentino has been named as finance secretary at Argentina’s economy ministry. Consentino moves up from his position as sub-secretary under Hernan Lorenzino, who was last week named economy minister. Lorenzino replaced Amado Boudou, who became the country’s vice president. Others on Lorenzino’s team include Axel Kicillof as economic policy secretary, Beatriz Paglieri as external commerce secretary, Guillermo Moreno as interior commerce secretary and Juan Carlos Pezoa as Hacienda secretary.
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EDP Stake Sale Decision Seen In Days
Portugal is expected to announce in a matter of days the winning bidder of a 21.35% stake in Energias de Portugal (EDP), and will choose from a group of potential buyers including Brazil’s Eletrobras and Cemig. A final decision is expected to be released on December 22, a spokeswoman for the Portuguese government-controlled energy company says. “At this point the process remains in the study phase,” she adds. Aside from the Brazilian utilities, Germany’s E.ON, and China’s Three Gorges have also submitted bids for a stake reportedly valued at EUR1.9bn. Last week, the Brazilian government decreed a change in the statutes of BNDES, allowing the development bank to finance Eletrobras’ bid for the EDP stake.
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Essal Set for Share Offering
Chile’s Essal is scheduled to announce pricing today on an up $80m equity offering as government entity Corporacion de Fomento de la Produccion (Corfo) looks to reduce its 45% position in the water utility. The issuer is targeting CLP90-CLP100 per share for the 387.7m secondary shares, indicating a likely size of CLP34.89bn-CLP38.77bn ($67m-$75m) The all-local sale is essentially an IPO, as Essal shares are illiquid, and the company is much smaller than the other government-backed water utilities that have come to the market this year. Corfo had also been considering a direct sale of a stake through an M&A deal, as it looks to get its position down to 5%. The sale is a repeat, though at a smaller size, of what Corfo did earlier in the year with its positions in Aguas Andinas, Essbio and Esval, under a broad government plan to sell assets to help with reconstruction costs from the 2010 earthquake. Banchile, Bank of America Merrill Lynch and IMTrust are managing the sale.
Posted inDaily Brief
KOF Ups Buying Spree with Queretano Bottler
Coca-Cola Femsa (KOF) has acquired the bottling operations of Grupo Fomento Queretano in a transaction worth MXP6.6bn ($479.3m), an indication of further consolidation in the Mexican bottling sector. As part of the purchase of Queretano, one of the oldest bottlers in Mexico, KOF will assume MXP1.22bn ($88.7m) of the target company’s debt and will pay Queretano shareholders with 45.1m of KOF’s newly issued L shares, at an estimated price of MXP119.29 per share for a total of roughly MXP5.38bn. The Queretano purchase also leaves KOF with a 26.1% equity stake in sugar producer Promotora Industrial Azucarera, up from the 13.2% stake it already owned. KOF officials could not immediately offer deal valuations. Queretano retained M&A advisory firm Seale & Associates, and law firm White & Case to advise on the deal, while KOF hired law firm Ritch Muller and Deloitte Galaz, Yamazaki, Ruiz Urquiza to handle the financial advisory. The operation would mean a 2.3% dilution to KOF shareholders, taking into account KOF’s prior two acquisitions this year of bottler Cimsa and Grupo Tampico, and it implies a valuation of EV/Ebitda of 9.7x, Santander says in a research note. Santander reckons that Queretano would increase KOF sales by 2.5% or MXN3bn and would add MXP683m to Ebitda, a 2.8% increase. In a separate note to investors, Moody’s indicates that it expects KOF’s credit metrics to remain robust despite this transaction, leaving it with a debt-to-Ebitda level of 1.14x. Since KOF held roughly MXP18.65bn in cash as of September 30, Moody’s expects the company to prepay an estimated MXP6.07bn in debt it has assumed from companies it has purchased this year. KOF shares closed Thursday at MXP121.84.
Posted inDaily Brief
Oaxaca Prices Domestic Bond
The Mexican state of Oaxaca has raised MXP1.947bn ($140m) through the sale of a domestic bond. The 15-year bond priced at TIIE+135bp, wide of TIIE+125bp-130bp price talk. Proceeds are marked for infrastructure investment and to repay debt. Interacciones led the transaction, rated AAA on a local scale.
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PDG Realty Preps CCB Sale
Brazilian developer PDG Realty is preparing to sell BRL250m ($133m) in Cedulas de Credito Bancario (CCB), according to rating agency documents. The 2016 notes will be secured by receivables of specific housing projects. Banco do Brasil is managing the sale, rated Aa3 on a national scale.
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SQM Preps Local Debt Issue
Chilean chemical company SQM plans to raise up to UF2.5m ($107m) through a domestic bond issue. It will have the option of choosing among 10-year and 30-year UF-denominated notes. Proceeds will cover liabilities, investment financing and other general purposes. The issuer, rated AA minus on a national scale, does not name the lead banks or provide timing on the sale.