Argentina’s state-controlled energy company YPF has raised ARP750m ($157m) through the sale of domestic bonds, it says. The 2017 notes pay Badlar+425bp. It does not name the bookrunners. Separately, Argentina’s Petersen Group has forfeited 5.38% of YPF to Spain’s Repsol, YPF says, as a penalty for failing to make payments on loans. Earlier this year, Repsol accepted 21.2m YPF shares from Argentina’s Petersen Group in lieu of payment for a loan. The Argentine government’s expropriation of a 51% stake in YPF out of Repsol’s 57.4% in May and an adjustment of YPF’s dividend policies left the Petersen Group without means to pay back loans it had taken out in 2008 and 2011 to gain a 25.5% stake in YPF.
Category: Bonds
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BR Properties Plots Debenture
BR Properties plans to return to the local bond market, it says, targeting BRL500m ($245m). The real estate manager’s 2014 debenture should pay DI+0.71%. Proceeds will go to repay debt. Banco do Brasil, Bradesco, BTG Pactual and HSBC are managing the sale, to be done under the rule 476 restricted format. The sale follows a BRL600m raise in July in the broader rule 400 market, including a 2017 tranche paying the DI+1.08% and an inflation-linked 2019 at 5.85%.
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CFR Issues Tight Debut
CFR has issued UF3m ($142) in domestic bonds, in the Chilean pharmaceutical company’s first-ever debt sale. A 2033 bond with a 10-year grace period priced at 100.43, with a coupon of 4.00% to yield 3.96%, or 136bp wide to government bonds. The yield was lower than expected, says a source familiar with the deal, who adds that the transaction also demonstrated demand for long-dated corporate paper. The order book reached about UF5m. Proceeds could be used for M&A activity. IMTrust and Santander managed the transaction, rated A+/A on a national scale.
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Cielo Tightens Price Talk
Cielo is heard aiming for a yield of UST+235bp (+/-10bp), revised from mid UST+200bp-area, for a new $875m 10-year bond, according to investors. The Brazilian credit card payment processor was scheduled to complete a roadshow Thursday and price the debut international bond as soon as today. Proceeds are expected to be used to fund the acquisition of US payment processor Merchant e-Solutions. Banco do Brasil, Bradesco and Goldman Sachs are managing the deal, rated BBB+/Baa2.
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IIC Prices FRN
Inter-American Investment Corporation (IIC) emerged Thursday with a $350m 2015 floating-rate bond. The transaction was upsized from $300m, and priced at par with a coupon of 3-month Libor+35bp, tight to 40bp-area price talk. Daiwa, Deutsche Bank, JPMorgan and Mizuho led the Aaa2/AA/AAA rated RegS transaction. IIC is part of the Inter-American Development Bank.
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Ultrapar Unit Readies Local Bond
Ipiranga Produtos de Petroleo is preparing to sell BRL600m ($294m) in Brazil’s local bond market, parent Ultrapar says. The 5-year debenture should pay 107.9% of the DI. The fuel distributor is looking to raise funds to repay debt. Bradesco is managing the sale, to be done under the rule 476 restricted format.
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Veracruz Returns for Local Securitization
Veracruz has returned to Mexico’s domestic bond market, addressing a small bit of its refinancing needs with a MXP4.86bn ($369m) three-tranche securitization of future federal payment flows. Though the issuer raised less than it could have, bankers and other states are hopeful the transaction signals a reopening for sub-sovereign entities to issue in the local market. A MXP1.86bn 2027 fixed-rate peso-denominated tranche with an 11-year average life pays 8.90%, or Mbonos+300bp. A MXP700m 2027 floating rate peso-denominated tranche with an 11-year average life pays TIIE+200bp. A MXP2.3bn 2037 UDI-denominated tranche with a 19-year average life pays 5.80%, or UDIbonos+365bp. The long tranche was the only one of the three that hit the MXP2.3bn limit set for each tranche. Demand ranged from 1.22x-1.25x for each tranche, with Afores, pension funds, insurance companies and bank trading desks driving demand. “The deal shows appetite for sub-sovereign risk in Mexico from institutional investors, but one cannot fail to note that investors are clearly cautious and requiring to get paid to take on the risk,” says a credit analyst following the transaction. The bonds feature covenants that limit debt, and a guarantee from development bank Banobras for up to 45% of each tranche. Proceeds will be used towards the state’s MXP30bn refinancing plan, as it seeks to refinance liabilities and improve its debt profile. Banamex, Banorte-Ixe and BBVA Bancomer managed the deal, rated AA/AA+ on a national scale and the first of its type since the state of Oaxaca priced a MXP1.95bn 15-year Banobras-backed bond in December 2011. Last year, the state’s congress approved the restructuring of MXN 12.6bn in outstanding debt and the issuing of MXN 17.4bn, following several years of poor financial performance.
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Unifin Lands Inside Expectations
Mexico’s Unifin Financiera has raised MXP1bn ($76m) in the domestic bond market. The 2-year floating-rate bond priced at TIIE+225bp, inside of TIIE+240bp price talk. The deal was 1.4x oversubscribed with a good mix of investor participation. Proceeds will be used to rollover debt. Ixe and Scotia led the transaction, rated A/A minus/A minus on a national scale.
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Uruguay Keeps Debt Options Open
Uruguay ended a non-deal roadshow last week in what was described simply as investor updates with US accounts, according to a source at the country’s ministry of finance. Citi and BNP Paribas managed the meetings, which took the sovereign to meet with US accounts on the West Coast, Boston and New York from October 31 through November 2. Azucena Arbeleche, director of debt management at Uruguay´s finance ministry told LatinFinance in August that the sovereign was eyeing the dollar markets and would prefer to issue a dollar bond over an international inflation-linked transaction, but that its main focus is local currency issuance. Uruguay’s last transaction in the international market was a UYP19.91bn ($1bn) in inflation-linked 2028 bonds last year. A benchmark-sized dollar transaction would make sense for Uruguay, as it could raise funds to prepay loans from multilaterals, although it has no imminent financing needs and is in no rush to tap the dollar market. Moody’s and Standard & Poor’s have each returned the country to coveted investment-grade status this year.
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Volkswagen Leasing Prices Domestic Bond
Mexico’s Volkswagen Leasing has issued MXP2.5bn ($191m) in 2015 domestic bonds, after receiving an order book that was 1.2x oversubscribed, according to a banker on the deal. The leasing unit of Volkswagen’s Mexico operations will pay TIIE+40bp, just wide of the TIIE+25bp-35bp price estimations. Santander and BBVA Bancomer managed the deal, rated AAA on a local scale.