Category: Argentina

Argentina will issue up to $750m in another 7% Bonar due 2017 today. The outstanding $750m tranche of Bonar, which was issued in April to yield 8.46%, was trading at just above 8.40% late Wednesday, suggesting pricing on the bullet bonds could come in the 8.40%-8.50% range. That would lead to a dollar price of around 91 or just under. The total Bonar X program for 2007 is $2.5bn.

Argentina’s Transportadora de Gas del Sur priced Wednesday one of the country’s largest corporate bond offerings in recent memory, a $500m issue of 2017 non-call 5 bonds at 7.875%. The price was tightened from a 8% area. The book was heard at over $3.3bn, with 56% US, 27% European, 8% Asian and nearly 5% Argentine participation. The bulk of the buyers were large institutions and hedge funds, according to a banker close to the deal. The issuance was effectively a liability management exercise, in which TGS took out most of its 2010s and 2013s issued in 2005 which carry 8.0% and 8.5% coupons. Those notes include restrictive covenants, including a cash sweep, which increases the annual cost of the debt to over 10%. The remaining 11% of the 2005 issues is expected to be taken out in June with cash. Merrill Lynch and JPMorgan had joint books. It is rated B1/B+ (Moody’s/S&P) and the funds raised are being used to buy back debt. In a statement Wednesday, TGS said that it has had a take-up of 89.4% for its offer to buy back $424m of its 2010 and 2013s, originally issued in connection with the company’s debt restructuring in 2004. TGS also plans to cancel a debt of $206m with the IDB.

Argentine shopping mall developer Alto Palermo, a subsidiary of real estate investment firm Cresud, raised $170m in two tranches of bonds rated B+/B+ by Fitch/S&P. The $120m in 10-year bullets priced at 7.875%, the tight end of 8% guidance. The $50m in 5-year peso-linked bonds priced at par to yield 11.000% versus 11.375% talk. Citi had sole books with Standard Bank as joint-lead.

Argentina is lining up the second tranche of its new Bonar X bond and will likely issue a further $750 million, local media reported. The sovereign pushed out its curve last month when it sold $750 million of the new 10-year dollar-denominated paper in the first tranche of a program totaling $2.5 billion. The Republic then had to pay a yield of 8.46%, towards the top end of the range predicted by analysts. The 7% bonds mature April 2017 and pay interest twice a year: in April and October.

Argentina’s Transportadora de Gas del Sur is out with guidance on a $500m issue of 10-year non-call 5 bonds in the 8% area. The deal is expected to price Wednesday morning via JPMorgan and Merrill Lynch. Separately, Alto Palermo, the Argentine shopping mall developer is expected to bring a two-tranche offering Tuesday, via Citi and Standard Bank. A $120m dollar portion was expected in the 8.000% area while a $50m peso tranche was talked at 11.375% area.

Argentine shopping mall developer Alto Palermo has issued guidance on $170m in bonds it will issue Tuesday via Citi and Standard Bank. A $120m USD tranche is expected to come in the 8% area while the $50m worth of peso bonds are being talked in the 11.375% area.

Argentine toll road operator Autopistas del Sol is looking to raise up to $220m in amortizing senior notes due 2017 as part of a liability management exercise. The company is tendering for $100m in 7% of 2009 bonds and exchanging up to $110m its 2014 for new 2017 notes which start amortizing in 2012. The company, which has over $300m in outstanding debt, will see a small reduction in total indebtedness. The new notes have a BB+ local rating from S&P. Holders need to tender by May 16. Citi is leading.

Venezuela’s president, Hugo Chávez, has turned his attention to his country’s steel industry and financial institutions, threatening to nationalize Sidor, a unit of Argentina’s Ternium, as well as several financial institutions, for failing to meet local demand.

Guidance on a $500m 2017 non-call 5 bond from Argentina’s Transportadora de Gas del Sur is due as early as Monday, though it could even come Tuesday, say bankers on the deal. Pricing is expected for Wednesday, May 9 via Merrill Lynch and JPMorgan.

Argentina’s Pan American Energy is in the process of raising a 10-year $400m loan through the IFC. One third will be lent directly by the IFC while two thirds will be syndicated to international banks. The syndication is under way and one participant says he expects the loan to close in June. Pan American raised $250m through the IFC in 2005.