Andino Investment Holding is expecting to raise $150m from a bond sale in the second half of this year at its Aeropuertos Andinos del Peru (AAP) airport concession unit, it says. The maturity has not yet been determined and the banks involved have not been selected, a company official says. AAP, 50% owned by AIH and 50% buy Corporacion America, is raising funds for expansion at its airports. AIH has raised $43m in the ECM, and also sold $110m in bonds at its Terminales Portuarios Euroandinos unit in a sale managed by Goldman Sachs.
Category: Bonds
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CorpBanca Holdco Sets Bond Targets
Corp Group Banking was heard generating $900m demand by late Monday after giving high-6% to 7% yield indications for a $350m 2023 NC5 bond expected to price today. The holding company for Chile’s CorpBanca held two days of investor calls last week, but has elected to wait due to the presence of several other issuers – Andeans and banks among them – in the pipeline. The issuer is looking to follow CorpBanca, which earlier this month raised $800m from the sale of 3.125% 2018 bonds. “The holding company doesn’t have much leverage, and they received $100m in dividend payments [in 2012] which means the debt issue size can be generated in about two years time,” says an investor following the deal. Assigning a Ba3 rating, Moody’s also notes the steady and growing dividend contributions from its main operating subsidiaries, particularly CorpBanca, under both expected and adverse earnings scenarios. Proceeds will be used to refinance the issuer’s own debt as well as that of the group. Deutsche Bank and Goldman Sachs are managing the sale. The deal would be the ninth from a non-sovereign Andean issuer this year. Non-sovereign issuers from Colombia, Chile and Peru have raised $2.68bn so far in 2013, up from $2.43bn from 6 deals in January 2012. More are on the way, with Peru’s Cementos Pacasmayo and Chilean E&P operator GeoPark each meeting investors this week. Mexico’s Cementos Chihuahua is also on the road through Thursday. But first, JBS is expected today with a $300-500m 2023 NC5 bond.
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JBS Talks Price
Brazil’s JBS is out with 6.75%-area initial price thoughts for what is expected to be a $300-500m 2023 NC5 bond sale pricing as soon as today, according to people familiar with the process. JBS wrapped up two days of fixed-income investor meetings Monday, and will hope for a repeat of the warm reception peers Marfrig and Minerva received earlier this month. Leads are using JBS’s own curve as pricing reference points, with the meatpacker’s 2018 bonds trading to yield 5.0% Monday. The new bonds are issued by ESAL, an Austria-based wholly-owned JBS subsidiary, and unconditionally guaranteed by JBS and JBS Hungary Holdings. Proceeds will be used to refinance indebtedness and for general corporate purposes. Fitch projects that JBS’s free cash flow generation will be neutral to negative in 2013, which will continue to make the company dependent upon external financing to address its maturities in 2014, when it has close to BRL4bn ($1.98bn) of debt coming due. Bradesco, Banco do Brasil, Deutsche Bank, JPMorgan and Santander are managing the B1/BB minus sale. The new deal comes just about one year after the meatpacker’s previous international bond sale, through its JBS USA unit. It sold $700m in 8.25% 2020 NC3 bonds at an 8.50% yield.
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Majority Accepts Minerva Tender
Minerva has received acceptance from holders representing $9m (27%) of its 9.500% 2017 notes, $314m (84%) of its 10.875% 2019 notes and $317m (70%) of its 12.250% 2022 notes, it says. The figures apply to the results of its cash tender as of the January 25 early deadline. In the offer expiring February 8, accepting holders get $1,105 per $1,000 principal of the 2017s, $1,200 per $1,000 of the 2019s and $1,262 per $1,000 of the 2022s. The prices include a $30 per $1,000 bonus for those agreeing before early deadline. Minerva also seeks a supplemental indenture eliminating all of restrictive covenants in the 2019 and 2022 bonds. There is $34m outstanding in the 2017 bond, $372m of the 2019 and $450m of the 2022. BTG Pactual, HSBC and Credit Suisse are managing the tender. The same trio managed Minerva’s new $850m 2023 NC5 bond sale January 17, which raised funds for the tender.
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Molymet Sets MXP Timing
Chile’s Molymet is targeting a February 21 pricing for a new 2023 fixed-rate bond of up to MXP2.6bn ($203m) in Mexico’s domestic market. The deal had originally been expected as soon as this week. Proceeds will go towards the company’s investment plan and debt refinancing. Banamex and Banorte-Ixe are managing. Molymet is rated AA+/AA in Mexico. Molymet last issued in Mexico last year, selling MXP1.7bn in 2017 bonds at TIIE+80bp.
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Axtel Exchange Reaches 65%
Mexico’s Axtel has received acceptance from holders of 65% of the debt it is targeting in a bond exchange offer, it says, following the completion of the early acceptance deadline. In the offer scheduled to expire today, the telecom is targeting its outstanding 7.625% 2017 and 9.000% 2019 bonds. It is offering $594.61 per $1,000 principal, comprised of $500 in senior secured 2020 bonds, $44.61 in peso-denominated dollar-indexed 2020s and $50 cash. Holders accepting before the early deadline receive an additional $116 per $1,000 principal. The 2020 notes start at 7.0%, stepping up to 8.0% after the first year and 9.0% after year two. Axtel is rated Caa2/CCC+/B minus. The company also announced it has agreed to sell 883 telecommunication towers to MATC Digital, a subsidiary of American Tower Corporation, for $250m. In the deal, Axtel is to lease back space on these telecommunication sites from American Tower for initial minimum lease terms of 6-15 years.
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Banobras Nears Domestic Bond
Banobras plans to issue up to MXP2bn ($158m) in bonds in the Mexican domestic market Tuesday. The government development bank is selling 10-year fixed-rate bonds that are expected to pay around MBonos+50bp, according to a person close to the sale. Banamex and BBVA Bancomer are leading the deal, rated AAA on a national scale. Banobras in November raised MXP2.5bn in domestic bonds, with the 2015s paying TIIE minus 3bp. Demand reached MXP5.2bn.
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Molymet Puts Funds into US Unit
Chile’s Molibdenos y Metales (Molymet) has put $90m in additional equity into US-based Molycorp, it says, and has bought $20m of its bonds. The Chilean metals processor bought 15m Molycorp shares at $6.00 each. It also bought 2018 bonds paying 5.5%. The Chilean is using its own funds for the purchase, and now owns 20% of Molycorp.
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Banreservas Opens Market for DR Banks
Banco de Reservas de la Republica Dominicana (Banreservas) has opened the cross-border bond markets for Dominican banks, pricing a $300m 2023 Tier 2 subordinated transaction. The government-owned first-time issuer priced at 99.129 with a 7.000% coupon to yield 7.125%, the tight end of 7.125%-7.250% guidance. The book was heard reaching $750m by Friday morning, according to investors following the sale. Banreservas plans to use proceeds to improve its maturity profile, with a portion of the funds going towards regulatory capital purposes. Citi managed the sale, rated B2/B minus, below the bank’s B1/B default ratings. The Dominican sovereign is heard looking to follow into the international market, with Citi heard as one of the mandated banks. An issue would be the government’s first since a $250m retap of its 2021 bonds in November 2011.
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E&P Operator Joins Bond Debut Parade
GeoPark Latin America plans to begin a roadshow Tuesday in the US, Chile and Europe, looking to join the growing list of first-time bond issuers this year. The B/B independent oil and gas exploration and production company will meet accounts in London and Santiago Tuesday, New York Wednesday, and Boston Thursday before wrapping up on Friday in Los Angeles. A dollar 144a/RegS bond offering could follow, market conditions permitting. A $300m sale is likely, according to Fitch, as the issuer seeks funds to refinance most of its existing debt, partially fund capital expenditures and for general corporate purposes including possible new acquisitions. The issuance will be secured by a pledge of approximately 80% of the shares of its operating companies in Chile and Colombia and a pledge on inter-company loans granted by the issuer to its operating companies. Itau, JPMorgan and BTG Pactual are managing the meetings. GeoPark is based in Chile, and has operations in Chile, Colombia and Argentina.