Digicel Limited has raised $250m in new 2020 bonds, landing its lower coupon since a 2009 issuance of 8.25% $800m 2017 bonds. The Caribbean telecom priced the 8NC4 notes at par to yield 7% or T+ 503bp in line with 7.00%-7.25% guidance. “Too tight and below fair value,” says one EM investor, who comped against Digicel’s existing 2017s, which were being quoted at 105 or at 6.65% on a yield-to-worst basis. Based on that, he calculated fair value at 7.6% calculated fair value without a new issue concession. Proceeds are marked for general corporate purposes. Citi, JPMorgan, Credit Suisse, Deutsche Bank and Barclays led the B/B1 rated transaction. The issuer sold the 2017 notes through Digicel Limited in December 2009 at an 8.50% yield, to fund a buyback of more expensive 9.25% of 2012 bonds. The bonds were trading at 100.25 on the break, says an investor.
Category: Central America
CAF Prints Swiss Deal Ahead of European Meetings
Regional development CAF took advantage of improving swap rates from CHF to USD Friday to tap the Swiss franc market Friday with a CHF125m ($136m) 2-year floater. Given the lengthy period required for settlement to come into effect in Switzerland – in this case February 24 – the borrower wanted to jump now before numbers grew stale. Leads were able to anchor the trade with some reverse enquiry and a CHF100m size only to upsize it later as more investors expressed interest in the paper before pricing at par to yield 3-month CHF Libor+125bp. Demand came primarily from bank treasuries seeking short-dated FRNs for their own portfolios, with some private banking participating as well. Ratings are A1/A+/A+ (stable/positive/stable) by Moody’s S&P and Fitch. BNP Paribas acted as sole lead. This comes as HSBC takes CAF to see investors in Europe this week to update them on the credit.
Cabei Returns to USD Market after Three Year Hiatus
Central American development bank Cabei tapped both the international and local markets Thursday to raise $367m in one fell swoop. The borrower returned to the dollar markets for the first time since 2009, tempted by what remain ultra-low yields and the strong performance of recent deals. Cabei priced a $250m 5-year at 99.104 with a 3.875% coupon to yield 4.075%, at the tight end of 4.125% area guidance (+/-5bp). Capped at $250m, the deal saw largely buy-and-hold accounts participate, driving demand up to 3x. Appetite for the paper largely came from the US, but there was also strong participation from European accounts familiar with the name now that Cabei has made several forays in the Swiss franc market. Ratings are A2/A minus. Citi and HSBC acted as bookrunners. The deal came as Cabei also issued MXN1.5bn ($117m) in the Mexican domestic bond market yesterday. The 3-year bonds pay TIIE+15bp, in line with expectations, and the issue saw MXN2.4bn of demand. Banamex led the sale, rated AAA on a national scale. Buyers were said to be a diversified mix. Proceeds from both deals are expected to be used for general corporate purposes.
Cabcorp Readies Pricing
The Central American Bottling Corporation (Cabcorp) is out with guidance of 7.75% area on a $150m 10-year bond, with pricing expected today. The Guatemala-based anchor bottler for Pepsi in Central America was to wrap up roadshows in New York yesterday via sole lead Citi, marketing senior guaranteed notes rated Ba2/BB/BB+. Cabcorp is controlled by the Castillo family, with Pepsico holding an 18% stake. Cabcorp expanded into the Caribbean in 2009 when it bought PepsiAmericas and its territories in Puerto Rico, Jamaica and Trinidad. As of September 30, 2011, short-term maturities only amounted to $19m, versus $85m of cash on hand, according to Moody’s.
Cabei Preps MXP Issue
Central American development bank Cabei is looking to issue up to MXN1.5bn ($155m) in the Mexican domestic bond market this week. The 3-year bonds will pay a spread over TIIE, with pricing scheduled for Thursday. Cabei last came to the Mexican domestic market in September 2010, when it raised MXP700m through the sale of 2020 bonds, pricing at TIIE+65bp. Banamex led the previous sale, and is also managing this week’s issuance, rated AAA on a national scale.
Cabcorp Starts Investor Meetings
The Central American Bottling Corporation (Cabcorp) launched investor meetings Thursday in London and Santiago, and will head to Boston, Los Angeles and the US West Coast before finishing in New York on Wednesday. The Guatemala-based anchor bottler for Pepsi in Central America has been heard looking to raise $150m in the international bond markets. Citi is sole manager on the possible deal, rated Ba2/BB/BB+. Cabcorp is controlled by the Castillo family, with Pepsico holding an 18% stake. Cabcorp expanded into the Caribbean in 2009 when it bought PepsiAmericas and its territories in Puerto Rico, Jamaica and Trinidad. As of September 30, 2011, short-term maturities only amounted to $19m, versus $85m of cash on hand, according to Moody’s.
Citi Heard Clinching Cabcorp Bond Mandate
The Central American Bottling Corporation (Cabcorp) is heard mandating Citi as it looks to raise an expected $150m in the international bond markets. This comes as Moody’s assigns a Ba2 rating for the proposed senior unsecured fixed-rate global note after reviewing a preliminary draft of the legal documentation for the offering. The Guatemala-based anchor bottler for PepsiCo in Central America is controlled by the Castillo family, with Pepsico holding an 18% stake. Pepsico’s involvement is seen as credit positive, but the ratings are constrained by its comparatively modest profits against global peers and the company’s strategy to pursue acquisitions on a regular basis, the agency says. Cabcorp expanded into the Caribbean in 2009 when it bought PepsiAmericas and its territories in Puerto Rico, Jamaica and Trinidad. As of September 30, 2011, short-term maturities only amounted to $19m, versus $85m of cash on hand, according to Moody’s.
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.
CABEI Brings Triple-Market Bond
The Central American Bank for Economic Integration (CABEI) has placed $67.6m 10-year bond into three Central American markets, marking the first time a borrower has simultaneously registered and sold debt in three of the isthmus’s countries. The 2021 bond priced at par and offered buyers in Panama Costa Rica and El Salvador a coupon that steps up from 2% to 3% after year two, to 4% in year five and to 6% in year seven. Yield to call and yield to maturity for the $67.6m bond came in at 2.6% and 4.3%, respectively. The bonds are callable after 4.5 years. The development bank issued $31.6m in Costa Rica, $22m in El Salvador and $14m in Panama. Local pension funds and banks were the main investors. The multilateral bank’s issuance represents the first time a bond has been simultaneously registered and sold in three local capital markets in the region. Citi led the transaction, rated AAA locally in Costa Rica and El Salvador. A local rating in Panama was not required.
Banks Prepare For Guatemala RFP
Bankers are heading to Guatemala to pitch public credit on expectations that the sovereign will soon issue RFPs to refinance its maturing $325m 10.25% bond due November 2011. “It is not clear whether it will be a local or international [bond],” said one banker. “We expect that they would take advantage of low rates [in the international markets] and be interested in maintaining an international investor base by going external.”