David Beatty has resigned from his position as CEO of Brazil-focused Canadian gold company Rio Novo Gold, Rio Novo says. He leaves to return to investment banking-related work, and is replaced by Julio Carvalho, president of the company and of Rio Novo’s Brazilian legal entity Rio Novo Mineracao. Carvalho has worked as president, CEO and a member of the board of directors of Peak Gold, executive vice president of South and Central America of Goldcorp, president and CEO of Mineracao Onca Puma and CFO and executive director for Rio Tinto Brasil.
Category: Paywall
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Moody’s Raises Ecuador
Citing solid sources of funding and a track record of payments since a 2008 default, Moody’s has raised Ecuador’s credit rating to Caa1 from Caa2. The agency sees economic and fiscal indicators that compare favorably to medians for Ecuador’s sovereign peers, most of whom are B rated, as well as new external funding from China and other sources. Moody’s also notes Ecuador’s highly external creditor base and oil sector dependence among current challenges. The outlook is stable.
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Puma Nears Close
Puma Energy, a subsidiary of commodity trader Trafigura, is heard looking at a closing by the end of the month for its $330m 5-year syndicated loan. The funds will be used to pay for the acquisition of gas stations and storage facilities in Central America and the Caribbean from Exxon completed earlier this year. Citi is leading the deal.
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Still Seeking a Buyer, Cruzeiro Extends Buyback
The credit guarantee fund administering a tender for Brazil’s Banco Cruzeiro do Sul extended its deadline by one day, it says, and is expected to make an announcement about the fate of the bank today. The Fundo Garantidor de Credito’s (FGC) offer to buy back $1.58bn of the mid-size Brazilian bank’s debt needs 90% acceptance from creditors – it was short of this mark as of the August 28 deadline – and it must find a buyer for the troubled bank. The tender had hit 75% as of the early deadline, suggesting the 90% threshold could have been reached by Thursday’s final deadline. Finding a buyer is perhaps less certain, with rumors flowing in the local press regarding which large Brazilian bank – the buyer must have at least BRL2.5bn ($1.24bn) in assets and able to inject some BRL800m into Cruzeiro – might be interested. The tender launched in August offers about 49% of face value on six seires of dollar bonds. The FGC is offering $560 cash per $1,000 principal for the bank’s 8.00% 2012 bonds. It is also offering $510 per $1,000 for its 7.00% 2013, 7.625% 2014 and 8.50% 2015 and 8.250% 2016 bonds. Holders of the 8.875% subordinated bonds receive $260 per $1,000. Those that accepted before a September 5 early deadline receive an extra $50 per $1,000. Bank of America Merrill Lynch and HSBC are managing the tender. Brazil’s central bank seized Cruzeiro in June after finding “unsubstantiated asset items.” The bank has been under the temporary administration of the FGC during the fraud investigation.
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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.
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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.
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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.
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Banco do Brasil Revives Yen Issuance
Banco do Brasil is planning to price a new 3-year yen-denominated bond as soon as Friday, according to sources familiar with the matter, reviving plans put on hold in late July. The size of the transaction has not been finalized. In July, it was heard looking at perhaps $500m-equivalent for up to 5 years. Bank of America Merrill Lynch, Banco do Brasil, JPMorgan, Mizuho and SMBC Nikko are managing the so-called Euroyen deal. The Baa1/BBB Brazilian bank issued $24m-equivalent in yen-denominated bonds in 1995, according to Dealogic.
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BTG Pactual Plans COP Issue
BTG Pactual plans to issue 5-year bonds denominated in Colombian pesos, according to Moody’s and Fitch, which assign respective Baa3 and BBB minus ratings. Specific timing and size have yet to be determined for the bond, expected to be issued via BTG’s Cayman branch. The notes are part of a global medium-term notes program of up to $3bn with proceeds destined to enable new business generation and for general banking purposes. BTG, Celfin Capital and Deutsche Bank have the mandate. A sale would be the first from a Brazilian in COP, according to Dealogic data, and the first global COP since Emgesa and Empresas Publicas de Medellin last year. BTG raised $500m in the dollar market last year. Ealier this year, the Brazilian bank agreed to buy Colombian brokerage Bolsa y Renta for $52m, as the bank continues to spend its IPO funds raised in April to expand outside of Brazil.
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CSN Turns to Local Markets
Brazil’s Companhia Siderurgica Nacional (CSN) is planning a BRL1.57bn ($777m) bond sale in the domestic market, it says. The steelmaker is part of growing list of large and traditionally cross-border issuers who are turning to Brazil’s local market as it becomes more attractive. The steelmaker plans two tranches, each maturing in 2015. In the sale, to be done under the rule 476 restricted format, CSN is raising funds to repay previous debt. It does not indicate the bank managing the sale, and officials do not respond to a request for comment.