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.
Yearly Archives: 2012
Posted inDaily Brief
Pemex Targets October Close
Pemex is aming to close the renewal of a $1.25bn senior unsecured revolving credit facility as soon as the beginning of October, following bank meetings last week in Mexico City and this week in New York, say sources familiar with the state-owned oil producer’s plans. Citi, Credit Agricole, HSBC, JPMorgan, Mizuho and Sumitomo Mitsui are bookrunners on the deal. Pemex is rated Baa1/BBB/BBB. The unfunded transaction offers commitment fees of 45bp and lead manager tickets of $75m at 70bp, and would pay Libor+115bp if used. MLA spots were by invitation only, with BBVA joining for $100m.
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Pinfra Restarts Equity Effort
Promotora y Operadora de Infraestructura (Pinfra) is holding investor meetings as it looks to resume the process for an equity follow-on, according to investors. The Mexican infrastructure firm had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. The exact timing of the launch remains to be set, though the deal – along with the others in Mexico’s pipeline – is expected to wait until Santander Mexico’s $4bn-plus IPO is out of the way. Pinfra is expected to raise in the neighborhood of $300m-equivalent, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The deal will also include secondary shares sold by members of the Penaloza family and various investment funds. JPMorgan, Credit Suisse, and Ixe are managing. Pinfra shares closed Tuesday at MXP72.22 ($5.56).
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RCO Set for Domestic Toll Road Securitization
Mexico’s Red de Carreteras de Occidente (RCO) is expected to price a toll road securitization today, in a deal raising as much as MXP10bn ($770m). The concession operator could be looking at a spread of around Mbonos+270bp for a 15-year peso-denominated tranche with an 11-year average life, and around Udibonos+270bp for a 20-year UDI-denominated portion with a 14-year average life, according to buyside sources following the process. “The deal looks interesting and the spread where they are looking to price is reasonable,” says a Mexico City-based fund manager following the trade. The deal is backed by future toll road revenues and supported by a partial guarantee from government development bank Banobras. It would be the first such sale in Mexico since October of last year, the first for RCO – winner of the 2007 road concession originally known as Farac – and would represent a sizeable transaction for a Mexican local securitization market seeking greater supply. “We are looking at the deal with a lot of interest, but we’re analyzing if we want to add more infrastructure debt in our portfolio or look to equity stakes,” adds another fund manager, highlighting the option of equity deals in a building Mexican pipeline including a follow-on from infrastructure firm Pinfra. The bond market offers a good alternative to refinancing for RCO, which has significant syndicated loan debt, according to investors following the deal. They note market conditions are more favorable this year than last for issuing a securitization of this size and tenor, with more liquidity and appetite now. The asset – offering the fastest road connection between Mexico City and Guadalajara – is not only a mature one with years in operation, but also boasts growth potential. The deal is rated AAA on a national scale. BBVA Bancomer, HSBC, Inbursa and Santander are managing the sale, with Goldman Sachs and HSBC as structuring agents. RCO raised MXP6.5bn in the CCD markets in 2009. The domestic market w
Posted inDaily Brief
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.
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Viver Loses CEO
Alvaro Simoes has resigned as CEO of Viver Incorporadora e Construtora, the real estate developer says, effective Monday. He had also been serving as interim CFO. Eduardo Machado, the vp of incorporation, will fill the CEO role on an interim basis. Eduarco Canonico has been named CFO, coming from the position of adjunct finance director.
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CAF Eyes Sterling, USD
Regional development bank Corporacion Andina de Fomento (CAF) is heard considering a return to the dollar or sterling markets, according to a buyside source who was briefed on the multilateral lender’s plans. The supranational is heard considering a new 10-year USD in addition to gauging fixed-income investor appetite for a new sterling issue. “If they issue in sterling, CAF will probably have to pay another 15bp over the fair basis swaps level to get a transaction in sterling as there is an illiquidity premium attached to sterling issues though it is a high quality single A,” says the investor. Deutsche Bank is one of the banks heard working with CAF on the process. Bankers away from the process say that while CAF’s dollar bonds are performing well in the secondary – its 2022 bonds were trading at 3.30% Monday afternoon – it makes sense for CAF to diversify its investor base even if it has to pay up. “Sure the sterling market is more expensive than the dollar markets, but CAF can’t continue issuing in USD. It behooves them to look at other currencies even at a bit more of a cost,” says one banker. CAF took advantage of a recent ratings upgrade to raise CHF300m ($313m) in the Swiss market in early August. The multilateral lender’s director for financial policies and international issues, Gabriel Felpeto, told LatinFinance last month that CAF continues to analyze the USD, EUR, GBP and JPY markets, and did not rule out more CHF bonds before the end of 2012 as it seeks to diversify its funding sources. CAF is rated Aa3/A+/A+.
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Colombian Considers Bond Markets
With an eye on continued growth in infrastructure opportunities in Colombia, Construcciones El Condor could consider issuing a bond of up to $100m in the next two to three years, Alejandro Correa Restrepo, its director of investment, tells LatinFinance. Colombia has a need for continued growth in construction as it relates to infrastructure, with a rising interest in improving road conditions and other forms of transportation, he says. The company will carefully evaluate the opportunities ahead, as it looks to sign on to projects the government is now structuring to allow private companies to propose infrastructure projects. It could also choose to proceed using its own funds, he adds. The builder completed its IPO earlier this year via Bancolombia raising COP162.58bn ($92m).
Posted inDaily Brief
Colpatria Eyes Domestic Bonds
Banco Colpatria could look to issue COP100bn ($56m) in subordinated bonds in Colombia’s domestic market, with the ability to upsize to as much as COP150bn, say sources familiar with the Colombian lender’s plans. The notes are expected to be sold October 5, and will most likely have a 10-year maturity and be IPC-linked. Colpatria, rated AAA on a national scale, is heard to be self-leading the sale. The upcoming issuance is not yet rated, through its most recent subordinated sale got an AA+ mark. In that sale in February, Colpatria issued COP150bn in 10-year subordinated notes paying inflation plus 4.64%.
Posted inDaily Brief
Fibria Continues Asset Sales
Brazil’s Fibria has agreed to sell its Losango forest assets in southern Brazil to Chile’s CMPC, it says, for BRL615m ($304m). The asset is the latest outside Fibria’s core business to be sold as a part of a long-term deleveraging plan that has included numerous debt refinancing and an equity raise this year. The Chilean pulp and paper producer plans to make the cash payment to Fibria unit in three steps. It will disburse BRL488m upon approval from the CADE antitrust regulator, another BRL122m upon approval from other government agencies and a final BRL5m upon transfer of contracts associated with the land assets. The final value could also be adjusted following due diligence, Fibria adds. Fibria bought back $514m in 2020 bonds in June, and raised BRL1.44bn through an equity follow-on in April. It sold its Corus Agroflorestal forestry assets in March, raising BRL235m. Investors, debt buyers in particular, have been largely receptive to Fibria’s continuous deleveraging efforts in the past few years, though rough conditions in the global pulp market may challenge Fibria and its peers going forward. “We are negative regarding the debt reduction prospects of Latin American pulp, paper, and forest products companies in the near to medium term. We expect [free cash flow] to continue to be pressured in 2013 as additional pulp capacity enters the market. In order to avoid negative rating actions in this environment, management teams will need to seek alternative avenues for deleveraging, including the sale of assets,” Fitch says in a report. Additional challenges for the industry include poor demand in the weak US and European economies and slower growth in EM, it says. Barclays notes the deal is positive, finding BRL650m value in the assets. “Although we see the asset sale as positive for Fibria, it was widely anticipated by the market and should not represent a major development in terms of deleveraging,” the shop says. It sees 2013 net/debt to Ebitda falling to 2.8x from