Mexico’s Sanluis is planning a debt roadshow next week, starting in London on Monday and then making its way to Switzerland, New York, and Boston before finishing in Santiago on October 1. Bank of America Merrill Lynch and JPMorgan are coordinating. Moody’s expects a $250m size, it says, and assigns a Ba3 rating to the potential deal. “Since the last economic crisis and Sanluis’s parent company’s emergence from its reorganization proceeding in 2011, credit metrics have improved substantially as the company’s operation has normalized,” the agency says.
Yearly Archives: 2012
Posted inDaily Brief
Aval Raises $1bn
Colombia’s Grupo Aval has become the latest LatAm borrower to cash in on strong investor appetite, particularly for Andean names, with a well-bid trade clinching a price far inside of initial talk. The group drew around $8bn in orders for the $1bn 2022 bond. The holdco for banks including Banco de Bogota priced at 99.607 with a 4.750% coupon to yield 4.800%, inside of 4.850%-5.000% guidance that was brought in from 5.125%-area talk. The bonds were trading up 0.50 points late Wednesday afternoon, according to investors. The tightening from announcement to launch took a lot off the table, but investors still found some pickup to the closest comparables. “This is not coming cheap, but is not terribly expensive,” says a participating European EM investor. He notes a “decent” pickup to Grupo Sura’s 2021 bond, trading to yield 4.4% Wednesday morning and likely the closest comp. Investors also note the trade coming wide to Aval’s existing 2017 bonds on an interpolated basis, and that the issuer is one of the stronger credits in Colombia. Some 400 accounts were heard participating in the transaction. Aval is raising funds to support investments and for general corporate purposes. Goldman Sachs, JPMorgan and Corficolombiana managed the sale, rated Baa3/BBB minus. Aval’s 2017 bond was sold in January raising $600m in its international market debut.
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Belize Set for Default
Belize faced the end of a 30-day grace period to make a $23m coupon payment Wednesday afternoon, with no immediate news as to whether any agreement has been reached with creditors. More details were expected today, according to investors following the process. Prior to entering the grace period last month, the government released three possible restructuring scenarios involving haircuts and maturity extensions. However, Belize has not seemed in urgent need to reach a compromise, saying it does not anticipate a need to borrow externally in the near future. There is $544m outstanding in Belize’s 2029 Superbonds.
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Colombia’s Popular Raises Local Funds
Banco Popular has issued COP400bn ($222m) in Colombia’s domestic bond market, upsizing from COP250bn, according to a person familiar with the transaction. The Colombian bank issued COP80.9bn in 2014 bonds with an interest rate of 6.30%, COP40.6bn in 2015 bonds with an interest rate of 6.39%, and COP278.4bn in 2017 inflation-linked bonds with an interest rate of 3.69%. Demand came in around COP622bn. Popular self-led the transaction, rated AAA.
Posted inDaily Brief
Coltel Set for Bond
Colombia Telecomunicaciones (Coltel) has given 5.50%-5.75% yield guidance for a 10-year bond, expected to price today, according to people familiar with the transaction. The issuer is expected to issue $750m in dollars only, after considering a possible Colombian peso-denominated portion during a roadshow that ended Wednesday. With books heard already topping $5bn Wednesday afternoon, Coltel brought in pricing from earlier 6%-area whispers. Credit Suisse, HSBC and JPMorgan are managing the BB sale. The issuer merged its fixed line operations with Telefonica Moviles Colombia in June, and is 70% owned by Telefonica (BBB) and 30% by the Colombian government.
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Energisa Wants Additional Equity
Facing BRL1.6bn ($792m) in investment needs in 2012-2014, Brazil’s Energisa plans to raise BRL300m-BRL500m in additional equity capital, it says. The electric distributor is analyzing the process and does not give details on timing. The funds would support its investment needs, as well as possible acquisitions.
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Maestro Seeks to Move up Pricing
Peru’s Maestro is targeting a $180m 7-year NC4 bond, according to people familiar with the process, and may price as soon as Friday. Though on a roadshow scheduled to end next week, the home improvement retailer is heard having opened the order books – already oversubscribed as of Wednesday – and to be considering bringing the deal this week. The Ba2/BB minus issuer is raising funds to address some $100m in debt and fund approximately $80m in capital expenditures, in addition to general corporate purposes. Bank of America Merrill Lynch and JPMorgan are managing the transaction.
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Mexichem Advances FO
Mexichem has received shareholder approval for the issuance of new stock, it says, paving the way for its planned equity follow-on. The transaction is awaiting launch, and expected to do so as soon as this month ahead of a likely October pricing. The Mexican industrial conglomerate’s approval covers an issue of 260m shares, an amount that would raise MXP16.06bn ($1.25bn) at Wednesday’s MXP61.77 closing price. Citi, HSBC, JPMorgan and Morgan Stanley are managing the transaction. The equity sale follows the raising of $1.15bn in the international bond market earlier this month. The offering of 10 and 30-year bonds received $17bn in orders.
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Mills Tightens Domestic Bond
Mills Estruturas e Servicos de Engenharia is set to raise BRL270m ($134m) in Brazil’s domestic bond market, it says, reaching the top of a BRL200m-BRL270m range and tightening pricing from initial expectations. The engineering firm’s sale features a BRL161m 2017 tranche paying the DI+0.88%, coming in under a DI+1.0% ceiling, and a BRL109m 2020 inflation-linked tranche paying 5.50%, coming in under a 5.90% ceiling. Mills plans to use proceeds to finance investments, repay debt and for working capital. An official at the company declines to offer additional details on the transaction, done under the rule 476 restricted format, as it is not fully settled.
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Mitsui Adds GN Mexico Gas Stake
Mitsui & Co is set to purchase a 15% stake in Gas Natural Mexico (GNM), it says, spending $93m. The Japanese buyer has agreed to acquire 13.25% from Spain’s Iberdrola for $82m and another 1.75% from other shareholders for $10.8m. The move for the gas distributor expands Mitsui’s footprint in Mexico, where it is engaged in various gas-related activity, notably the Manzanillo LNG import terminal. The deal represents Iberdrola’s exit from GNM, as part of the Spanish company’s broad non-core asset sale plan, which aims to raise EUR2.5bn ($3.25bn) during 2010-2012. The completion of each transaction is subject to regulatory approvals. Gas Natural and a subsidiary control 70.9% of the Mexican unit.