Peru’s Maestro has given 7.125%-area yield guidance for a $180m 7-year NC4 bond, expected to price today. The home improvement retailer was heard with an order book at almost 10x late Thursday, leading to a decision to price today despite a roadshow scheduled to last through early next week. The Ba2/BB minus issuer is raising funds to address some $100m in debt and fund approximately $80m in capital expenditures, in addition to general corporate purposes. Bank of America Merrill Lynch and JPMorgan are managing the transaction, with Scotia as co-manager.
Category: Bonds
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Sanluis to Meet Investors
Mexico’s Sanluis is planning a debt roadshow next week, starting in London on Monday and then making its way to Switzerland, New York, and Boston before finishing in Santiago on October 1. Bank of America Merrill Lynch and JPMorgan are coordinating. Moody’s expects a $250m size, it says, and assigns a Ba3 rating to the potential deal. “Since the last economic crisis and Sanluis’s parent company’s emergence from its reorganization proceeding in 2011, credit metrics have improved substantially as the company’s operation has normalized,” the agency says.
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Aval Raises $1bn
Colombia’s Grupo Aval has become the latest LatAm borrower to cash in on strong investor appetite, particularly for Andean names, with a well-bid trade clinching a price far inside of initial talk. The group drew around $8bn in orders for the $1bn 2022 bond. The holdco for banks including Banco de Bogota priced at 99.607 with a 4.750% coupon to yield 4.800%, inside of 4.850%-5.000% guidance that was brought in from 5.125%-area talk. The bonds were trading up 0.50 points late Wednesday afternoon, according to investors. The tightening from announcement to launch took a lot off the table, but investors still found some pickup to the closest comparables. “This is not coming cheap, but is not terribly expensive,” says a participating European EM investor. He notes a “decent” pickup to Grupo Sura’s 2021 bond, trading to yield 4.4% Wednesday morning and likely the closest comp. Investors also note the trade coming wide to Aval’s existing 2017 bonds on an interpolated basis, and that the issuer is one of the stronger credits in Colombia. Some 400 accounts were heard participating in the transaction. Aval is raising funds to support investments and for general corporate purposes. Goldman Sachs, JPMorgan and Corficolombiana managed the sale, rated Baa3/BBB minus. Aval’s 2017 bond was sold in January raising $600m in its international market debut.
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BTG Talks Price
BTG Pactual is aiming for a 6.375%-area yield on a 10-year Tier 2 bond expected to price by the end of this week, according to investors following the transaction. BTG Pactual, Citi and Deutsche Bank are managing the sale, rated BB. The bank is also considering a separate global Colombian peso-denominated transaction, to be done through Bradesco, BTG, Celfin Capital and Deutsche.
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Colombia’s Popular Raises Local Funds
Banco Popular has issued COP400bn ($222m) in Colombia’s domestic bond market, upsizing from COP250bn, according to a person familiar with the transaction. The Colombian bank issued COP80.9bn in 2014 bonds with an interest rate of 6.30%, COP40.6bn in 2015 bonds with an interest rate of 6.39%, and COP278.4bn in 2017 inflation-linked bonds with an interest rate of 3.69%. Demand came in around COP622bn. Popular self-led the transaction, rated AAA.
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Coltel Set for Bond
Colombia Telecomunicaciones (Coltel) has given 5.50%-5.75% yield guidance for a 10-year bond, expected to price today, according to people familiar with the transaction. The issuer is expected to issue $750m in dollars only, after considering a possible Colombian peso-denominated portion during a roadshow that ended Wednesday. With books heard already topping $5bn Wednesday afternoon, Coltel brought in pricing from earlier 6%-area whispers. Credit Suisse, HSBC and JPMorgan are managing the BB sale. The issuer merged its fixed line operations with Telefonica Moviles Colombia in June, and is 70% owned by Telefonica (BBB) and 30% by the Colombian government.
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Digicel Tender Sees Strong Support
Digicel has received acceptance from holders representing more than $1.2bn of $1.5bn outstanding in two series of 2015 bonds targeted in a buyback offer, it says, as of an early acceptance date. Its Digicel Group Limited unit has received acceptance from holders of $340m, or 82%, of its 9.125%-9.875% 2015 toggle notes and $910m, or 91%, of its 8.875% 2015 senior notes. Digicel is offering $996.25 per $1,000 principal of the 2015 toggle notes and $995.00 per $1,000 principal of the 2015 senior notes. In each case, holders who accepted before September 18 receive an additional $30 per $1,000. Citi is managing the tender offer, which expires October 2. The buyback is funded by Digicel’s recent $1.5bn sale of new 2022 NC4 bonds.
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Maestro Seeks to Move up Pricing
Peru’s Maestro is targeting a $180m 7-year NC4 bond, according to people familiar with the process, and may price as soon as Friday. Though on a roadshow scheduled to end next week, the home improvement retailer is heard having opened the order books – already oversubscribed as of Wednesday – and to be considering bringing the deal this week. The Ba2/BB minus issuer is raising funds to address some $100m in debt and fund approximately $80m in capital expenditures, in addition to general corporate purposes. Bank of America Merrill Lynch and JPMorgan are managing the transaction.
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Mills Tightens Domestic Bond
Mills Estruturas e Servicos de Engenharia is set to raise BRL270m ($134m) in Brazil’s domestic bond market, it says, reaching the top of a BRL200m-BRL270m range and tightening pricing from initial expectations. The engineering firm’s sale features a BRL161m 2017 tranche paying the DI+0.88%, coming in under a DI+1.0% ceiling, and a BRL109m 2020 inflation-linked tranche paying 5.50%, coming in under a 5.90% ceiling. Mills plans to use proceeds to finance investments, repay debt and for working capital. An official at the company declines to offer additional details on the transaction, done under the rule 476 restricted format, as it is not fully settled.
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Alupar Unit Seeks Public Status
Usina Ferreira Gomes has applied for public company status with Brazils CVM, the designation for issuers of public equity or publicly-distributed domestic bonds. The hydroelectric project has already been funded with domestic debt raised by Alupar Investimentos. In March, Alupar sold BRL300m ($167m) in 2027 bonds through a private sale to the government FTGS fund. The inflation-linked notes pay 7.8%.