Mexico’s Caterpillar Credito has issued its second domestic bond under a MXP5bn program, raising MXP1bn ($77m). The financing arm for Mexico’s Caterpillar subsidiary priced the 2016 at TIIE+40bp, in line with TIIE+35bp-40bp price thoughts, and inside of TIIE+43bp secondary trading levels of its 2016 bond sold last year. Demand reached 1.8x, with participation from a diversified mix of investors including mutual funds, insurance companies, and private banking, according to people following the sale. The bonds, guaranteed by Caterpillar Financial Services, have a 2.5-year average life. Proceeds will be used for general corporate purposes. HSBC managed the deal, rated AAA on a national scale.
Category: Bonds
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Scotia Peru Sets Target
Scotiabank Peru has given 5%-area guidance for a new $400m 2027 NC10 Tier 2 bond, according to sources following the sale. The Bank of Nova Scotia subsidiary is scheduled to wrap up its roadshow today, as it seeks funds to strengthen its capital. The 15-year subordinated step-up bonds have a fixed coupon for 10 years and then revert to a floating rate. The Baa2/BBB+ credit is being comped against Banco de Credito del Peru’s (Baa3/BBB minus) $350m Tier 2 2027 NC10 bond, trading to yield around 4.7% Wednesday. Bank of America Merrill Lynch, Goldman Sachs and Scotia are managing the sale. It would be Scotia Peru’s first international offering since a $175m diversified payment rights securitization done in 2010, according to Dealogic data.
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Telecel Aiming under 7%
Telefonica Celular del Paraguay (Telecel) is out with low 7%-area initial price thoughts for a debut $300m 2022 bond, investors say. The BB rated telecom was scheduled to finish a three-continent roadshow Wednesday, with pricing to follow. Proceeds will be used to repay a $150m bridge loan raised for its recent acquisition of Cablevision, with the balance to finance capex and potential spectrum license costs. Citi and Morgan Stanley are managing. Telecel operates the Tigo brand and is a subsidiary of Millicom International Cellular.
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Voto Cimentos Gets Local Funds
Brazil’s Votorantim Cimentos has completed the sale of BRL1.2bn ($566m) in domestic bonds, according to Anbima. The 2019 debenture pays 109.2% of the DI. Bradesco managed the sale, done under the rule 476 restricted format.
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Scotiabank Peru Targets $400m
Scotiabank Peru is targeting a $400m size for a planned 2027 NC10 Tier 2 bond issue, according to Moody’s. The agency assigns a Baa2 rating. The Bank of Nova Scotia subsidiary is scheduled to wrap up a roadshow Thursday, with pricing expected to follow. The 15-year subordinated bonds will have a fixed coupon for 10 years and revert to a floating rate afterwards. The Baa2/BBB+ bank is being comped against Banco de Credito del Peru’s (Baa3/BBB minus) $350m Tier 2 2027 NC10 bond, quoted at UST+350bp Tuesday. Bank of America Merrill Lynch, Goldman Sachs and Scotia are managing the sale. It would be Scotia Peru’s first international offering since a $175m diversified payment rights securitization done in 2010, according to Dealogic data.
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Tuscany Pulls Bond Debut
Tuscany International Drilling has officially cancelled its bond plans, it says, citing market conditions. “While Tuscany had hoped to opportunistically access the debt capital markets to refinance its existing credit facilities, market indicators suggested the anticipated size of the offering and its associated cost of capital would not be in the best interests of Tuscany’s shareholders,” it says. The Canadian-based land drilling services provider predominately operating in LatAm had issued initial price thoughts of low 10%-area and was aiming to sell a $200m 2019 NC4 bond, following meetings in Canada, Latin America and the US that stretched through this week. Credit Suisse and Scotia were managing. The terms of its existing credit facilities remain appropriate for the company’s present operations, it adds. Approximately 60% of Tuscany’s fleet is concentrated in Colombia and Brazil.
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Watts Issues Bonds
Watt’s has issued UF1m ($48m) in Chile’s local bond market, pricing a 20-year bond at 101.83 with a 4.20% coupon to yield 4.07%, or government papers plus 104bp. Raising funds to refinance liabilities, the food products company chose the 20-year maturity over the shorter tenor options also available under a UF6m shelf. LarrainVial managed the deal, rated A/A on a national scale. It was the first sale since May 2011, when Watt’s raised UF1m in 5-year and 20-year bonds.
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YPF Seeks More Debt
Argentina’s state-owned oil company YPF plans to sell up to ARP4.5bn ($928m) in domestic bonds under its $3bn program, it says. It sold ARP750m in 2017 bonds paying Badlar+425bp earlier this month, and recently reopened them for ARP1.36bn. The issuance, via Nacion Bursatil Soceidad, comes under a $3bn program. YPF previously said that it needs to borrow more than $7bn help with the $37bn it aims to invest through 2017. Argentina’s government expropriated of 51% of the company from Spain’s Repsol in April.
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Banco General Closes DPR
Panama’s Banco General has closed a $100m bond backed by future and existing USD-denominated diversified payment rights (DPR), according to Fitch, which assigns an A rating. Wells Fargo is heard managing the private placement. The 2019 bond features a two year interest-only period with no principal payments and pays a spread to Libor. Further details of the transaction were not disclosed. The bank’s DPR flows reached $1.7m during the first half of 2012 and $3.8bn in 2011.
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Educator Preps Debentures
Brazil’s Anhanguera is planning to raise up to BRL170m ($80m) in domestic bonds, it says. The educational operator plans a BRL85m 2017 tranche paying the DI+1.5% and a BRL85m 2019 tranche paying the DI+1.7%. It is raising funds to improve its debt profile. It does not comment on the banks involved in the operation, to be done under the rule 476 restricted format.