Itau has agreed to pay BRL83m ($41m) to acquire the stake it still does not own in a retail financing joint venture with Lojas Americanas, it says. Lojas Americanas is to pay BRL112m to end a tie-up agreement with Itau that prevented it from teaming up with another bank for this type of JV.
Category: Bonds
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Masisa Set for Roadshow
Chile’s Masisa expects to start a roadshow Tuesday for a domestic bond issue of up to UF2m ($94m), expected at the end of the month or in early September. The board products manufacturer can choose from a 5.00% 2017 bullet bond and a 5.30% 2033 note with a 10-year grace period. Proceeds would refinance existing debt. BCI and Scotia are leads on the deal, rated A minus on a local scale. Masisa is also heard looking next year to the international markets as an option for additional refinancing. Earlier this month, Masisa agreed to acquire the Rexcel particle board business from Mexico’s Grupo Kuo for $54m plus working capital through the close of the deal.
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Metro Postpones Bond
The Dominican Republic’s Metro Country Club has decided to postpone a planned $150m 2019 bond, according to a banker managing the sale. The developer was aiming to price the securitization this week, following release of 14%-area price guidance last week. A need to update financial statements with fresh 2Q results, as numbers went stale Monday, and to give investors more time to analyze the credit were among the reasons for the wait. The transaction has a 3.5-year average life and is backed by flows related to the sale and operational revenues from the Las Olas, Marbella, Costa Blanca and Metro Country Club projects. “My guess is that they didn’t find the investor base and the price signal was wrong,” says a New York-based EM investor who opted out citing robust credit risks. Proceeds were destined to refinance $75m in existing debt, as well as complete current projects and fund the acquisition of land for new ones. Bank of America Merrill Lynch is managing the transaction, rated B2/B minus and done through the MCC Finance vehicle. Relying on private equity for funding, Metro tried a $110m debt placement in 2007 and again in 2008, and also attempted a 5-year $75m Reg D private placement in 2010.
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Mexico to Issue $2bn-plus in Exchange
Mexico plans to issue $2.19bn in reopened 2022, 2044 and century bonds as a result of the tender offer in which it accepted $1.88bn principal in 15 series of existing notes, its government says. The swap increased the average life of the debt by more than two years, and lowered the costs. The sovereign expects to issue approximately $559m of reopened 2022s, $963m of reopened 2044s and $670m of re-opened century bonds. It will also pay $19m of cash to accepting holders, with the premiums varying depending on which specific bonds the holder is exchanging. The sovereign accepted $522m in six series of old 2013-2017 bonds in exchange for reopened 2022 bonds, $792m in13 series of 2013-2040 bonds in exchange for reopened 2044 notes and $568m in 14 series of 2013-2040 bonds in exchanged for reopened century bonds. Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs managed the process.
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MMX Unit Taps Local Funds
Brazil’s MMX Sudeste Mineracao, a subsidiary of Eike Batista’s MMX mining company, has completed a BRL600m ($297m) domestic bond sale, according to Anbima. The 2014 bond pays DI plus 3.5%. Bradesco managed the sale, done under the rule 476 restricted format.
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Brazilians Advance Huaso Invasion
The first issuance from a Brazilian in Chile’s local bond market may be one step closer, with Banco Pine registering for a so-called Huaso bond. The mid-size Brazilian lender has registered a UF6m ($285m) program of up to 10-years, according to Fitch, who assigns an A minus national-scale rating. The move follows BTG Pactual’s sounding out of investors in June. Pine’s program covers issuance in UF, CLP or USD, with proceeds supporting the bank’s growth. Pine has hired JPMorgan and Celfin to manage the process, according to people familiar with the plan, for which the timing is unclear. It is targeting funding diversification, says a person familiar with the bank’s plans, while Chilean investors with excess cash on hand must look for investments outside of their market. So far, only Mexico’s America Movil and Peru’s BCP have executed Huaso deals. Mexico’s Corporacion Geo last week received approval from Chilean regulators for a $100m-equivalent bond shelf, and is targeting a 10-year UF deal through Santander.
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Caixa to Beef up Loan Book
Brazil’s Caixa Economica Federal plans to increase its loan book by a whopping 42% percent this year, up from 33%. Lending already grew 44% in the first half and the state-owned bank should hit BRL183bn ($91bn) in 2012, according to remarks by its CEO confirmed by a spokeswoman. The increase should be driven by an expansion in mortgage and consumer lending. The bank is also discussing a potential capital injection with the government that might take place before year-end.
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Colombian Bank Raises COP Bond
Banco de Occidente has issued COP300bn ($168m) in Colombia’s domestic bond market. The sale includes COP50bn in 2015 bonds paying DTF+1.67%, COP101bn in 2022 inflation-linked bonds paying 4.10% and COP149m in 2027 inflation-linked bonds paying 4.27%. Total demand was more than double the amount issued, and the interest rate for each tranche came in below the maximum levels set prior to the sale. The transaction raises funds for the Colombian bank’s loan portfolio. The issuance brings the unit of Grupo Aval to completion of about half of a COP3trn program. InterBolsa led the deal, rated AAA on a national scale.
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Forum Parks Domestic Issuance
Chilean auto lender Forum has issued UF1.7m ($81m) in the country’s local bond market. The 2.5-year bond priced at 99.3 with a 4.1% coupon to yield 4.4%, or the government benchmark plus 179bp. Proceeds are marked to finance growth. BBVA and BCI managed the sale, rated AA minus on a national scale. In March, Forum issued UF1.5m, pricing a 3.5% 2.5-year bond to yield 3.7%, or government bond plus 160bp.
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Slim RE Lands Mexican DCM Debut
Mexico’s Inmuebles Carso has raised MXP5bn ($381m) in its domestic bond market debut. The 2017 priced at TIIE+75bp, according to sources following the transaction. The real estate company spun off from Carlos Slim’s Grupo Carso holdco last year priced within TIIE+70bp-75bp guidance. While difficult to comp, it offered a premium to holdco Grupo Carso’s (AAA/AA+) MXP5bn 5-year bond priced at TIIE+53bp in March. “It priced in line with our relative value estimates,” says one Mexico-City based investor. Afores, insurance companies, retail investors and banks accounted for most of the participation, allowing the issuer to see MXP6.4bn in demand. Proceeds will be used for short-term debt refinancing. Actinver, Inbursa, Banamex, and BBVA Bancomer led the transaction, rated AA+/AA on a national scale. Mexico’s local DCM continues to see activity in August, with Thursday’s sale bringing the year-to-date total to $4.39bn-equivalent according to Delaogic data, which is down from $8.25bn at this point in 2011.Red de Carreteras de Occidente (RCO) is on the road this week with a toll road securitization and is targeting MXP6-MXP10bn divided among 15-year peso and 20-year UDI bonds. Microlender Banco Compartamos is preparing to issue up to MXP2bn ($152m) in 2017s on August 22. The CFE has also registered for a 30-bond of unspecified size.