Pesquera Exalmar is heard indicating a high-7% yield for its cross-border bond debut, according to investors following the sale, with pricing expected as soon as today. The B2/B Peruvian fishery is considering a $200m 2022, according to Moody’s. “It looks OK, even though it is more levered than Copeinca and smaller with similar ratings,” says an investor following the deal and anticipating at least a 100bp pickup to Peruvian peer Copeinca. Exalmar plans to use proceeds to refinance an existing $140m syndicated loan due 2017 and costing it Libor+390bp, as well as to purchase 0.5% of additional fishing quota. Citi and Santander are managing.
Category: Bonds
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Itau Places Chilean Bonds
Itau Chile has issued UF1m ($49m) in the domestic bond market, according to a person familiar with the transaction. The 2028 priced at a discount with a 3.75% coupon to yield 3.96%, or BCU20+122bp. The issue saw 3x demand. Itau managed the deal, rated AA minus/AA on a national scale.
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JBS to Visit Investors
Brazil’s JBS is scheduled to meet investors beginning today, as it looks to follow peers Minerva and Marfrig into the international bond market. The meatpacker’s two-day roadshow visits New York, Los Angeles, Boston and London and is scheduled to finish Monday. Bradesco, Banco do Brasil, Deutsche Bank, JPMorgan and Santander are managing. JBS is rated B1/BB minus. A new deal would come 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. B2/B+ Marfrig raised $600m in new 9.875% 2017 bonds last week, followed the next day by B1/B+ Minerva’s $850m in 8.0% 2023 NC5. Both have seen secondary performance that should encourage JBS. Marfrig was trading Thursday at around 101.5, up from a par sale, and Minerva at around 104, versus a 98.3 sale price.
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Brazilian Wraps up Debentures
Randon, a Brazilian manufacturer of truck trailers and rail freight cars, has completed the raising of BRL300m ($145m) in the domestic bond market, according to Anbima. The 2019 debenture pays the DI+1.15% and amortizes in two equal parts in years six and seven. The proceeds are marked for repaying short-term debt and working capital. Bradesco coordinated the sale, done under the rule 476 restricted format.
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OSX Bond Call Seen Unlikely
Brazil’s OSX is unlikely to call its 9.25% 2015 bonds this year, according to Barclays, which cites direct discussions with management at the Eike Batista-controlled shipbuilder. The decision comes contrary to the market’s expectations. “While we think [fellow EBX unit] OGX has significantly greater price upside potential, we still think OSX 2015s offer an attractive carry at current levels,” the shop says, noting that the bonds trade to yield 7.03% to the next March 2014 call, and 7.18% to the March 2015 maturity. Ultimately, the decision to call depends on management’s financing plans. The OSX-3 drillship requires $240m in capex for completion, with borrowing up to $250m at OSX-1 and issuing 1.5-year mezzanine debt among the options. The 2015 bond was sold in March of last year, raising $500m at a 9.25% yield. Batista put $250m in equity capital into OSX last year, with a matching amount to be done by March of 2014.
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Surtigas Plots Domestic Debt
Colombia’s Surtigas continues working toward a COP200bn ($113m) domestic bond issuance, tentatively expected the second week of February, say people familiar with the process. It is heard to be seeking IPC-linked interest rates and long tenors, with 10 and 15-year tranches possible. Funds will be used to repay debt. Corficolombiana is managing the transaction.
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Investors Crowd into Mivivienda Debut
Peru’s Fondo Mivivienda was heard with order books reaching $1bn late Wednesday for a new benchmark-size 2023 bond, and indicated a UST plus low-200bp yield target ahead of today’s expected pricing. The BBB rated Peruvian government-owned for profit financial institution that promotes mortgage financing plans to issue a minimum $500m in its cross-border debut, but is heard considering up to $800m. Leads on the deal are looking at Peruvian development bank Cofide’s 2022 bonds, trading to yield 3.36-3.40% Wednesday, as a comp. Proceeds are to be used for general corporate purposes. The issuer finished a three-continent roadshow Wednesday. Bank of America Merrill Lynch and Citi are managing.
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Pemex Benchmark Sees $8bn Demand
Pemex priced a new $2bn 2023 bond Wednesday, getting $8bn in orders as it took a sizeable bite out of its 2013 financing needs. The UST+170bp yield comes versus a level UST+160bp level seen on the Mexican state-owned oil company’s 2022s. The Baa1/BBB bond priced at 99.724 with a 3.500% coupon to yield 3.533%, tight to UST+185bp-area price thoughts. The bonds were trading flat to slightly up late Wednesday. Investors saw 10bp-15bp concession. “The market has been making space for a Pemex issue and expects them to tighten,” says a participating EM investor. About 300 accounts participated, with US institutional buyers playing a leading role, according to people familiar with the details. BBVA, JPMorgan and Citi led the 144A/RegS transaction. The issuer had an option to exercise a greenshoe of up to 15% during Asian market hours. The deal follows a reopening of Pemex’s 2044 bonds for $1bn in October, which capped off a 2012 where it raised $6bn total, including the region’s first Australian dollar-denominated bond. Envisioning perhaps $4bn in cross-border issuance in 2013, finance officials have said they will monitor the Euro market as well as some South American currencies – Peru and Colombia the most likely – for potential issuance in addition to USD. Pemex also plans to become a more regular Mexican domestic market issuer. The new 2023’s flat secondary levels came as the previous day’s issuance, a $500m 2018 from Banco Davivienda and $300m 2016 from BBVA Continental, were seen trading up just 0.125-0.250 points Wednesday, according to traders. Nevertheless, the pipeline remains full. Peru’s Fondo Mivivienda is expected to raise at least $500m today, perhaps joined by Banreservas and Corp Group and Exalmar, who also completed roadshows this week.
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Promigas Closes in on Local Bonds
Promigas will look to issue up to COP500bn ($281m) in Colombia’s domestic bond market on January 29, according to people familiar with the gas company’s plans. The issuer is heard able to select among IPC-linked 7-year, 10-year, and 20-year tranches. The proceeds will be used to refinance liabilities. Corficolombiana is managing the deal, rated AAA on a national scale, with Casa de Bolsa, Corredores Asociados and Serfinco also acting as bookrunners. Promigas last sold bonds in the domestic market in August 2009, raising COP400bn at various maturities via Bancolombia.
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Mexico Funding Needs Lower in 2013
Mexico’s gross financing needs of MXP1.28bn ($102bn), which represent 7.7% of GDP, are down from last year’s 8.1% of GDP, according to the finance ministry’s annual borrowing plan. The MXP416m in net indebtedness needs represent 2.5% of GDP, compared to 2012’s 2.7%. Most of the needs will be satisfied in the domestic market. In terms of external financing, ministry officials have indicated a $7bn ceiling for 2013, and will consider sources including dollars, yen and euros. In Mexico, the government plans to add a new 5-year fixed-rate syndicated bond, and will retap its 3, 10, 20 and 30-year Mbono benchmarks. In the UDI-denominated space, it plans to continue reopening the 3, 10 and 30-year Udibonos. The finance ministry projects an increase in net debt to 26.8% of GDP this year, from 26.4% in 2012. Net external debt would fall slightly, to 5.1% of GDP from 5.2% previously. The government’s overall financing costs should stay flat at 1.7% of GDP. The financing plan – the first under the new Pena Nieto administration – is seen as a continuation of the debt polices of the previous years. Barclays, in a report, calls it a “positive development because it provides certainty with respect to debt management under the new administration.”