Brazil’s Allpark Estapar Empreendimento Participacoes e Servicos has raised BRL240m ($115m) in domestic bonds, according to Anbima. The parking lot operator’s 2017 bond pays the DI+2.4% and amortizes monthly starting in 2015. Bradesco managed the sale, done under the rule 476 restricted format. Allpark operates the Estapar parking facilities.
Category: Bonds
Posted inDaily Brief
Cencosud Fills Cart with Orders
Order books for Cencosud’s 2022 bond, expected to price today, were heard hitting more than $2bn Wednesday afternoon, as the issuer indicated a UST+375bp-area yield. The Baa3/BBB minus Chilean supermarket operator is expected to raise $1bn, and finished a roadshow Wednesday. JPMorgan, BBVA, BNP Paribas, Itau, Mitsubishi-UFJ, Mizuho, and Santander are managing the sale, done to raise funds for the recent $2.6bn purchase of Carrefour’s Colombian operations. Cencosud is also readying a $1.5bn equity capital increase to cover the rest of the takeout, expected in December or January. Its last dollar bond was its cross-border debut in January 2011, raising $750m in 2021 notes.
Posted inDaily Brief
CFR Talks Price
Chile’s CFR Pharmaceuticals is heard aiming for a yield in the neighborhood of 5.50%-5.75% for a $300m 2022 NC5 bond, with pricing expected as soon as today. Investor interest was heard reaching $1bn as of Wednesday. JPMorgan and Deutsche Bank are managing the BBB minus/BB+ deal. Fresh off of its domestic DCM debut, the pharmaceutical company now turns abroad, raising funds for the $562m acquisition of Colombia’s Laboratorio Franco Colombiano (Lafrancol) agreed in August. CFR raised UF3m ($142m) through a domestic 2033 bond earlier this month.
Posted inDaily Brief
Corpbanca Issues Domestic Subordinated Bonds
Corpbanca has issued UF6.63m ($315m) in subordinated bonds in Chile’s local market. It priced a UF1.13m 4.00% coupon 24-year tranche at a 4.28% yield, and a UF5.5m 4.00% coupon 27-year tranche at a yield of 4.48%, according to industry sources. In October, it was heard planning a subordinated bond sale in the international markets, as part of the funding for its $1.28bn acquisition of Helm Bank. Chile’s longer tenors and the ability to avoid international funding costs were among the reasons for choosing the Chilean market for its issuance, says a person familiar with the company’s plans. Corpbanca managed the deal itself.
Posted inDaily Brief
DF Clinches Local Debt
The government of Mexico’s Distrito Federal has issued MXP2.5bn ($193m) in the domestic bond market. The 2027 bonds priced at 6.85%, or Mbonos+85bp, in line with expectations. The deal was done slightly differently to most, according to a source familiar with the sale, with books closing once the MXP2.5bn amount was reached, though the short time to do so implied heavy demand. Guaranteed by the federal government, the bond is rated AAA on a national scale. Banorte-Ixe and Santander managed the transaction. In December of last year, DF sold MXP1.77bn in 5-year bonds at TIIE+30bp.
Posted inDaily Brief
Argentina Pushes for Appeal, Sees Downgrade
Argentina’s government has filed to appeal the most recent US court judgment, it says, while Fitch has lowered its rating to CC on the likelihood of a default. In an attempt to avoid a default next month, Argentina appealed a US court order issued last week to pay $1.3bn to holdout creditors. The order is based on a previous ruling that Argentina must treat holdouts equally to bondholders who accepted 2005 and 2010 bond swaps. In a new twist, the government says that if the US judge arranged a formula offering holdouts the same terms presented in the 2010, Argentina’s Congress could debate it. It is unclear if such a move could be worked out ahead of December 15, when a $3bn payment on GDP-linked warrants to the restructured bondholders is due. “A missed payment on the GDP-linked warrants could trigger a cross default on all exchanged debt securities issued under international law. Subsequently, a missed coupon payment of any other external securities would also trigger a cross default on all exchanged bonds issued under international law,” Fitch says in a report lowering Argentina’s rating to CC from B. The outlook is negative. An Argentina default could set a precedent endangering future restructurings, analysts say.
Posted inDaily Brief
BCP Issues Domestic Bonds
Banco de Credito del Peru (BCP) has issued PES200m ($77m) in the domestic bond market. The 2022 bullet bonds have an interest rate of 5.313%, and are the tenth issuance under a PES1.8bn program. Orders opened Monday for the deal, managed by BCP unit Credibolsa and rated AAA/AAA on a national scale. In October, BCP sold PES200m ($77m) in domestic bonds, with the 2022 pricing at par with a 5.5% coupon.
Posted inDaily Brief
Camargo Completes Local Debt
Camargo Correa has finalized the sale of BRL600m ($293m) in domestic bonds, according to Anbima. The 2019 debentures pay DI+0.9%, and amortize during the final three years. Caixa Economica Federal managed the sale, done under the rule 476 restricted format.
Posted inDaily Brief
JBS Controller Gets Debenture
JEF Participacoes, the controller of meatpacker JBS, has wrapped up the sale of BRL500m ($179m) in domestic bonds, according to Anbima. The 2017 debenture pays DI+1.82% and amortizes monthly beginning in 2015. Caixa Economica Federal managed the sale, done under the rule 476 restricted format.
Posted inDaily Brief
Kuo Aims Yield Target
Mexico’s Grupo Kuo is heard out with price thoughts of mid-to-high 6% for a new 2022 NC5 bond, expected at $250m. The conglomerate is scheduled to finish a roadshow today, as it seeks funds for a cash tender targeting its $250m outstanding in 9.75% 2017 bonds. In the tender, Kuo is offering holders $1,053.75 cash per $1,000 principal before a November 30 early deadline, and $1,023.75 per $1,000 through the December 14 final deadline. The offer is contingent on the bond sale. Credit Suisse is managing the tender, and is joined by Citi, Bank of America Merrill Lynch on the new deal, rated BB.