Brazilian real estate developer MRV Engenharia has kicked off its roadshow for a 2014 BRL400m debenture issue. The company says it will pay up to 1.6% over the DI rate. Bradesco BBI is managing the sale. Proceeds will be used to acquire land for new projects and to strengthen working capital.
Category: Daily Brief
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CCM Unit Extends Again
Tiendas Comercial Mexicana has again extended the period for its local debt exchange offer, it says, to March 2. Parent Controladora Comercial Mexicana seeks to extend its maturity profile as it recovers from crisis-related derivative problems. The retailer is offering holders up to MXP1.5bn in new 2016 notes in exchange for 5 series of outstanding bonds with nearer maturities. The new bonds are rated BB on a national scale and should be issued following close of the offer. Comerci has not indicated the acceptance rate to this point. Ixe is managing the transaction.
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Voto Heard Entering Cimpor Fray
Brazil’s Grupo Votorantim, which until now has been a bystander in the bidding for Portugal’s Cimpor, which includes a tender offer by CSN and a merger proposal from Camargo Correa, is heard to be seeking to acquire Lafarge’s 17% stake in Cimpor. The move was reported in the local Portuguese press and bankers away from the process confirm Voto is indeed targeting the stake. Camargo is also rumored to be preparing a new proposal to remain in the running for Cimpor after it withdrew its original merger offer late last week, citing technical and procedural reasons. Senior executives at all 3 bidders were heard in Portugal negotiating a deal with investors over the weekend. Voto’s move appears to be designed to thwart CSN’s outright takeover of Cimpor, rather than to challenge it in a bidding war for control. Cimpor shareholders include Lafarge (17%), Teixeira Duarte (23%), Manoel Fino (11%), Bipadosa (7%) and Cinvest (4%). Itau analysts say CSN is the most likely winner in the bidding. They favor CSN’s bid because it is the only live offer that reaches out to all shareholders; its Brazil-based cement business does not conflict with Cimpor’s and CSN is the most financially sound bidder of the 3 Brazilians. CSN has recently filed a BRL10bn short-term note program whose proceeds could eventually be used for the acquisition. However, with the likelihood of further bids, the price of Cimpor is seen rising beyond the EUR5.75 a share which CSN is offering and above the EUR6.27 it closed at Tuesday.
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Argentina Readies X Bonds
Argentina’s government has authorized the sale of up to $1.1bn in domestic bonds, through the tap of an existing 2017 issuance known as Bonar X, according to its official bulletin. The troubled issuer does not give an indication of when it would sell the bonds, and adds it can also place $17.9m of the bonds that went unsold last year.
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Telemar Suspends Bond Issue
Brazil telecom company Telemar Norte Leste, also known as Oi, has suspended a BRL2.25bn ($1.3bn) non-convertible debenture issue. The company says it and Banco Santander, the manager of the sale, decided to suspend the issue to focus on the reorganization of Brasil Telecom, which it purchased last year.
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Multiplus Builds an Equity Book
Brazil’s Multiplus is scheduled to price its IPO today after the close. The book is heard already 75% filled at the lower half of the BRL18.00-BRL24.00 range, according to one investor who says he is interested in participating. If all of the base offering shares and optional units are priced at the midpoint, the deal could be worth BRL1.25bn. The buysider says he expects the deal to generate substantial interest, albeit potentially below the midpoint, and should result in a handy sum of proceeds for selling shareholder TAM. TAM, meanwhile, is rumored to be eyeing a stake in Chile’s LAN. Chile’s new president Pinera is heard divesting his 26% share and TAM is rumored to be seeking a third of that piece, equivalent to roughly 8% of the company. BTG Pactual and Credit Suisse are leading Multiplus’ IPO, which will provide an important data point for other IPO hopefuls.
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Peru Fishmeal Monger Tightens Debut Bond
Corporacion Pesquera Inca (Copeinca) has raised $175m in its debut 2017 dollar bond sale, upsizing by $25m and hooking a 9.125% yield that is inside guidance. “This is an important player in its industry, and it’s great that they are taking out existing debt with the proceeds,” says a New York-based EM investor. He frets only that allocations were likely to be small, based on an apparent $900m demand. The BB minus note priced at 99.364 with a 9.000% coupon to yield 9.125%, inside 9.500%-area guidance. Despite the tightening, the bond was trading up 2 points at the end of the day Tuesday, according to investors, who also note a lack of high-yield corporate supply from Peru. Credit Suisse and Santander managed the sale. Copeinca plans to repay debt with proceeds, which total $173.9m, according to an investor. It had borrowed $185m in 2007 through a 5-year loan arranged by Credit Suisse, BBVA, WestLB and Glitnir.
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Brazil Follow-On Comes at Steep Discount
Brazil small-cap homebuilder Inpar has raised BRL280m through the sale of 87.5m shares at BRL3.20. That the deal was priced at all is an encouraging sign, and investors who participated could end up benefiting from the substantial haircut demanded of the issuer and potential post-deal recovery of the share price. The stock was clobbered in the sessions leading up yesterday’s pricing, says a buysider who did not participate. At BRL3.20, the shares were offered at a 4.5% discount to Tuesday’s close and 18% below the recent January 19 high of BRL3.91. Competing for investor attention with PDG Realty, a much larger and more widely followed homebuilder that is slated to price its follow-on Thursday, may also have contributed to the deal’s difficulty in pricing. Credit Suisse, Bradesco BBI, HSBC and Santander led Inpar’s follow-on.
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Coke Femsa Fizzes Through Sovereign
Mexico’s Coca-Cola Femsa (KOF) has sold its first dollar bond since 1996, upsizing to a thirsty crossover base and pricing through the sovereign. “For the first time in a while dollar bonds were cheaper [than Mexican pesos],” Ian Craig, KOF’s director of corporate finance and treasury tells LatinFinance. He adds that KOF had been monitoring the markets for several months and began to see attractive levels in December. Those involved in the trade claim it was the lowest-ever pricing on a 10-year LatAm dollar credit. The A3/A minus $500m bond was upsized from $400m on $2.5bn in demand, bankers on the deal say. The bulk went to high-grade investors, looking for a pickup to similarly-rated developed credits. EM accounts saw no incentive to participate in paper yielding 55bp inside UMS. The largest bottler of Coca-Cola beverages in LatAm priced at 99.491 with a 4.625% coupon to yield 4.689%, or UST plus 105bp, the tight end of 110bp area guidance. It was heard trading up around 1.5 points at the close Tuesday. Craig estimates the bottler could have sold $100m more, but was satisfied with growth to $500m. The deal went to about 150 accounts, he says, with the “great majority” US high-yield. About 95% placed with US-based accounts, a banker managing the deal says, with 55% going to asset managers and 30% to insurance companies. BofA-Merrill Lynch and Goldman Sachs were the leads, following a 4-day “non-deal” US road show last month. Proceeds are earmarked for refinancing debt and general corporate purposes. Craig says KOF has $300m in maturities across all currencies to meet this year. The bottler’s rating is higher than Mexico’s due to 31.6% ownership by Coca-Cola and a history of financial support to KOF from north of the border, says Fitch. It is 53.7% owned by Femsa SA, which last month exchanged 100% of its Femsa Cerveza beer unit for 20% of Heineken. KOF sold $200m in 10-year bonds in 1996, according to Dealogic and has borrowed 5 times since in the Mexican domestic
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Masher Passes 50%, Extends Offer Again
Mastellone Hermanos, the owner of Argentina’s La Serenisima dairy brand, is extending for the second time the deadline on a $222.5m debt exchange offer to February 12 from January 29. The dairy producer known in the bond markets as Masher says it has received consent from holders of $168m so far, representing more than 50% of creditors. Mastellone wants to exchange up to $222.5m in bonds and bank debt maturing 2011-2013 for new 2015 notes paying Libor plus 2.5% (capped at 6% all-in) and 2018s paying 7.0% initially, stepping up to 9.0% in 50bp annual increments starting January 2012. The swap will not reduce net debt. Bank of America-Merrill Lynch, hired in August to evaluate financial alternatives, is managing the process. Mastellone had already extended the deadline from January 8, after launching the offer early December.