Colombian fuel company Terpel is scheduled to issue up to COP700bn ($385m) in domestic bonds today, according to a prospectus. It is able to choose among 2018 inflation-linked bonds paying up to 3.30%, 2020 bonds paying up to 6.20%, 2023 inflation-linked bonds paying up to 3.60% and 2031 inflation-linked bonds paying up to 4.10%. Terpel is seeking funds to refinance debt. Bancolombia is leading the sale, rated AAA on a national scale, with Asesores en Valores and Corredores Asociados as bookrunners.
Category: Bonds
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Valid Plots Debenture
Brazil’s Valid plans to sell BRL250m ($127m) in domestic bonds, it says. The 2018 debenture would pay the DI plus up to 0.97%. The payment and security services specialist is looking for funds to repay existing debt. BTG Pactual and Santander are managing the sale, to be done under the rule 476 restricted format.
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AMX Returns for Well-Bid Global Peso Retap
America Movil (AMX) has raised MXP7.5bn ($587m) in the first reopening of its peso-denominated 2022 Titulos de Credito Extranjeros securities, with order books topping MXP17bn. Keeping in line with intentions for regular issuance of the MXP-denominated securities sold seamlessly to international and domestic investors, the Mexican telecom has now built up the total size to MXP22.5bn. AMX reopened the 6.45% coupon bonds at 105.129 to yield 5.76%, or Mbonos+75bp, the tight end of 75bp-80bp guidance that followed earlier 80bp-area whispers. According to market participants, the transaction offered 5bp concession to the 2022s, based on an Mbonos+70bp level prior to announcement. Demand was heard tilted to local investors – in contrast to the 80%-plus foreign portion of the original sale – with participation seen from institutional, Afore, insurance and asset management accounts. The issuer had filed to issue up to MXP15bn and was heard looking to get MXP5bn-MXP10bn. America Movil plans to issue every quarter, and foresees its next issuance to be MXP3bn-MXP5bn size. Proceeds from the notes will be used for general corporate purposes, including debt refinancing. The senior unsecured bonds are SEC and CNBV registered, denominated and settled in MXP, and trade on a fungible basis in the international markets and Mexico. They are rated AAA on a national scale and A2/A/A minus internationally. BBVA Bancomer, Banamex and Credit Suisse managed the reopening, with HSBC, Deutsche Bank, Morgan Stanley acting as passive bookrunners. The original sale in November raised MXP15bn, pricing at a 6.45% yield, or Mbonos+93bp, and getting more than MXP50bn in demand.
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Bottler Meets Domestic Buyside
Arca Continental is holding a roadshow today through Thursday ahead of a MXP3bn ($234m) bond sale in Mexico’s domestic bond market set for March 30, according to people following the sale. The bottler plans a 2018 TIIE-linked and a 2023 fixed-rate portion. Proceeds will be used for working capital purposes. BBVA, HSBC and Santander are managing the transaction, rated AAA on a national scale. Arca Continental raised a MXP2bn 10-year bond at 7.63%, or Mbonos +130bp, and a MXP1bn 5-year floating rate bond at TIIE+ 25bp, in October 2011.
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Chilean Lender Turns to International DCM
Chile’s Grupo Tanner Servicios Financieros is meeting investors ahead of what would be the latest Andean cross-border bond debut. A regular in Chile’s local bond market, the financial services institution is scheduled to visit accounts in Europe, Latin America and the US, according to people following the sale, and is considering a $300m 5-year senior unsecured bond, according to Fitch, which assigns a BBB minus rating. Tanner plans to start in Zurich and Geneva Wednesday, visit London and Lima Thursday, London and Bogota Friday, Boston and Los Angeles the following Monday, and New York and Miami on Tuesday. Proceeds will be used to fund an expected growth in assets as well as to prepay USD-denominated domestic debt. Bank of America Merrill Lynch is sole lead. Tanner is supported by “solid and stable financial performance throughout economic cycles, increased income diversification and the positive long-term prospective in the different segments,” says Fitch. Established in 1993, Tanner is one of the largest non-bank financial institutions in Chile, offering a full range of secured financing products and services mainly to small and medium-sized enterprises. Its loan portfolio is composed mainly of factoring loans (46.9%), car loans (40.5%) and leasing operations (12.6%).
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Fibria Moves toward IG
Fitch has revised the outlook on Fibria’s BB+ rating to positive from stable, it says, with a continued debt reduction possibly leading to a triple-B rating. The Brazilian pulp and paper company has used asset sales and equity issuance to reduce net debt to $3.7bn as of year-end 2012, from $5.9bn two years earlier. The change comes despite a drop in Fibria’s Ebidta, to $1.1bn in 2012 from $1.6bn in 2010. “Fibria’s approach to lowering debt during a period of negative market conditions is in contrast to many other industry participants, which have allowed their leverage to increase sharply,” Fitch says. The agency expects another $300m in debt reduction this year.
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Road Operator Eyes Local Market
Brazil’s Concessionaria Ecovias dos Imigrantes is preparing to raise BRL750m ($381m) in the domestic bond market, according to regulatory filings. The toll road operator has received approval to execute the sale, but details remain to be set. Finance officials at the company were unavailable for comment.
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Triangulo Upsizes Debenture
Brazilian road operator Triangulo do Sol Auto-Estradas has completed the sale of BRL691m ($351m) in domestic bonds, according to the CVM, upsizing from BRL620m. The 7-year sale is divided into a floating-rate tranche and an inflation-linked fixed-rate portion. A BRL324m floating portion pays DI+2.25%, inside a 3.0% limit, and amortizes twice annually beginning 2014. A BRL367m inflation-linked portion pays 5.40%, under an 8.0% limit, and amortizes annually beginning 2014. The Atlantia-Bertin unit plans to use proceeds for repaying BRL620m in 1.5-year debt due in October that is costing it DI+2.5%. BTG Pactual, Bradesco, Itau and Santander managed the sale, rated AA/AA on a national scale. The deal was initially prepared last year, before the issuer chose to pause in November. There have now been three deals closed this year totaling BRL2.14bn under the Brazilian rule 400, or widely-marketed, format.
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Unidas Readies Acquisition Debt
Brazil’s Unidas plans to sell $120m ($61m) in domestic bonds, it says. The vehicle rental provider’s 2018 debenture would pay the DI plus up to 1.80%. Proceeds would go to funding the BRL185m acquisition of competitor Best Fleet agreed last month. No additional details were given for the deal, to be done under the rule 476 restricted format.
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Molymet Shrinks Tequila Bond, Plans Retap
Chile’s Molymet has issued MXP1bn ($78.6m) in 2023 bonds in the Mexican domestic market, raising less than a planned MXP2.6bn. Nonetheless, the deal is the first 10-year maturity among so-called tequila bonds, or Mexican domestic-market bonds from a foreign borrower. A reopening of the bond to build up its liquidity is possible later this year, according to a person familiar with the transaction. The metals processor priced at 7.03%, or Mbonos +200bp, in line with Mbonos+200bp-area guidance. Demand reached 1.2x, driven by Afores and insurance companies. Proceeds are marked for general corporate purposes. Banamex and Banorte-Ixe led the sale, rated AA+/AA on a national scale. It was the fifth tequila bond for Molymet, which has operations in Mexico. The most recent prior transaction had been a MXP1.7bn 2017 done at TIIE+80bp. The deal brings the Mexican local market total to MXP17.20bn from four transactions this year, just shy of the MXP18.24bn from six deals in the corresponding period in 2012. A MXP4.5bn 2037 bond from the Monterrey-Saltillo toll road is expected tomorrow, and America Movil is heard ready to come this week with a retap of its 2022 global-local notes for up to MXP15bn.