Santander Chile has raised $750m in the international bond market, with investors putting in for some $5bn in orders. The Aa3/A/A+ rated lender got decent demand despite tightening to UST+ 232.5bp from initial UST+262.5bp-area price thoughts. The 2022 bond priced at 98.338 with a 3.875% coupon to yield 4.079% or UST+232.5bp, inside of 237.5bp-250bp guidance. The bonds were trading up 0.125 points in the grey, according to a trader. “People want yield and were willing to go longer for a single A deal at 4%. This was a great transaction and priced inside their 3-year,” says a banker away from the transaction. Leads and bankers away from the deal were looking at BCI’s 2022 bonds as a reference point, quoted at 225bp on an interpolated basis. Deutsche Bank, Goldman Sachs, JPMorgan and Santander managed.
Yearly Archives: 2012
Sura Considers Asset Management Float
Colombia’s Grupo de Inversiones Suramericana is considering floating its Sura Asset management unit, according to sources at the company. The timing and other details remain unclear, with the group still working on the integration of the pension assets it agreed to buy in late 2011 from HSBC. It paid $3.76bn for ING’s Latin American pension and insurance assets, funded through a COP3.5trn ($1.8bn) equity follow-on, and additional investment from Grupo Bolivar, UBS, the IFC, JPMorgan, General Atlantic and Bancolombia. CFO Ignacio Calle told LatinFinance last month that the group has its eye on European assets that may come up for sale going forward.
Swiss Insurer Adds Mexican Surety
Swiss insurer Ace has agreed to buy Mexican surety bond specialist Fianzas Monterrey from New York Life, it says, paying $285m cash. The deal expands Ace’s presence in Mexico, adding to commercial property and casualty, accident and health, and life insurance operations. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be completed during the first quarter of 2013. New York Life is shedding Fianzas, which it bought in 2000 from Aetna and Bancomer, because it is a non-core business. Established in 1943, Fianzas provides guarantees on construction and industrial projects, and is Mexico’s second-largest surety provider. Goldman Sachs advised New York Life.
UK Shop Invests in Brazilian English Lessons
London-based private equity firm Actis has agreed to invest $68m in Brazil’s CNA, an English language training provider, it says. Part of the investment comes from Actis 4, its new global fund. CNA is looking to double in size via organic growth and acquisitions. Actis also has invested in Brazil’s Universidade Cruzeiro do Sul.
YPF Returns to Market
Argentina’s YPF has raised ARP1.2bn ($258m) in 3-year domestic bonds, it says, its first issuance of debt since the government took control of the oil company earlier this year. The bonds pay the Badlar reference rate plus 4.0%, and amortize in three parts during the final year. The transaction is part of a larger sale that also included ARP300m in 1-year and 1.5-year short term debt. The sale came under a $1bn shelf, and was led by BACS, BBVA Banco Frances, Banco de Galica y Buenos Aires, Banco Macro, Santander Rio and Nacion Fideicomisos. Faced with large capex needs, YPF has indicated that it plans to sell up to ARP3.5bn in domestic bonds. YPF also plans to ask for approval to expand its debt program by $2bn, it says, and was scheduled to put the matter to a shareholder vote. The authorization would come in addition to the $1bn for which it is already authorized. The issuer is also preparing to engage international investors, with an eye on a possible issuance next year.
Frisa Nears Loan Closing
Frisa Forjados could close a $150m 5-year term loan as soon as this week, according to sources familiar with the plans of the Mexican metal parts manufacturer. The loan is heard paying Libor+300bp. BBVA, Citi, HSBC and Scotiabank are bookrunners on the deal, with Comerica Bank also participating. Proceeds are expected to be used for refinancing debt.
Gafisa Considers Alphaville Float
Brazil’s Gafisa is considering floating its Alphaville unit, it says, as it weighs options to unlock value that it claims the market underestimates. The homebuilder would also consider selling a stake in the high-end subsidiary, of which it owns 80%. It has hired to Rothschild and Bain & Company to advise. Alphaville generated average returns of 46% per year during 2007-2011, with project launches quadrupling in that period to BRL972m ($481m). Gafisa bought 60% of the high-income housing unit in 2006, before adding another 20% in 2010. There had been concern the homebuilder lacked the funds to complete the acquisition, following a poor first quarter. The company turned down a buyout offer from Chicago real-estate magnate Sam Zell and Brazilian investment fund GP Investimentos in March. Gafisa shares closed at BRL4.47 Tuesday.
Mexichem Aims Bond Sights
Mexichem was heard targeting 5.50%-area yield late Tuesday for a new 2022 bond, expected to price as soon as today, in a sale also expected to include a new 2042. The shorter bond is expected at a $700m size and the 30-year at $300m, according to ratings reports assigning Ba1/BBB minus ratings. Investors are taking a look at Braskem’s 2022s and 2041s, trading Tuesday to yield around 5.17% and 6.84%, respectively, as comps. The Mexican chemical producer was scheduled to finish fixed-income investor meetings Tuesday. Proceeds will be used to reduce debt, including the funding of a tender offer launched Friday targeting its $350m outstanding in 8.750% 2019 bonds. In the tender expiring September 13, Mexichem is offering holders $1,245 cash per $1,000 principal, which includes a $30 consent payment to adopt proposed covenant amendments. Citi, HSBC, JPMorgan and Morgan Stanley are handling the tender offer, the new bond sale, and an upcoming equity follow-on expected to raise as much as $1bn. LatAm DCM volume has been slower this week than last, with some issuers until after the US FOMC meetings scheduled to begin today. In addition to Mexichem, Santander Chile is heard considering a benchmark 10-year bond to price as soon as today, with Peru’s Maestro looking at coming to market as soon as Thursday.
Moody’s Analyst Joins Research Shop
Filippe Goossens has joined Spread Research as a managing director based in Buenos Aires, according to a source familiar with the move. He had been a corporate credit analyst at Moody’s in Sao Paulo since 2010. He had previously been at Credit Suisse, JPMorgan and financial consulting firm Breakstone Group. Spread Research is a provider of credit research focusing mainly on European high yield at convertible bond issuers that is expanding into EM corporate bond issuers.
Taesa Shrinks Local Bond Plans
Brazil’s Taesa plans to sell BRL1.6bn ($792m) in domestic bonds, according to a prospectus, reducing the target from a previously indicated BRL2.5bn. The transmission company owned by Cemig plans to hold a roadshow September 20-25, and aims to conclude bookbuilding by October 10. The debenture sale includes a 2017 tranche paying DI plus up to 1.0%, an inflation-linked 2020 tranche paying a fixed rate set to the government NTN-B bond plus up to 1.55% and an inflation-linked 2024 tranche paying a fixed rate set to the NTN-B plus up to 1.65%. The exact sizes and interest rates will be determined during bookbuilding, and overallotment options could bring the total size to as much as BRL2.16bn. Proceeds will help refinance short-term debt totaling BRL2.08bn taken out in 2011 and 2012. Taesa is also considering the issue of BRL1.2bn in one-year debt alongside the debenture sale. Itau is managing the sale, which has not yet been assigned a rating. Taesa is rated AAA/Aa1 on a national scale.