Intra Mexicana plans to raise up to MXP3bn ($224m) though a domestic securitization, scheduled for May 10. The 2019 floating-rate bonds are backed by receivables of money transfer fees done under the Dinero Express brand. The proceeds will be used to fund the acquisition of payday lender Advance America by Grupo Elektra and for general corporate purposes. Actinver, Ixe and Value are managing the transaction, rated AA minus on a national scale. Intra Mexicana, an electronic money transfer company operating under the brand name Dinero Express, started operations in 1996 and began to expand in Latin America in 2003.
Category: Bonds
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Peruvian Bond Debutant Bottles Massive Demand
Peru’s Ajecorp generated close to $2.6bn in orders for its $300m international bond debut, ratcheting down its yield well below expectations. The 2022 NC5 priced at par with a 6.50% coupon, to yield at the tight end of 6.50%-area guidance, which had been revised from 6.75%, and followed 7.00% whispers. “Great deal and great momentum,” says an EM investor following the trade. “Ajecorp took advantage of supply in the market and priced well given demand,” says a DCM banker away from the deal. The bonds were trading up a point in the grey late Tuesday, according to investors. The BB/BB+ producer and distributor of soft drinks including the Big Cola brand was directly comped against compatriot BB+/BBB minus Coca-Cola bottler Corporacion Lindley, whose 6.75% of 2021s traded to yield 5.60%-5.90% Tuesday. Ajecorp offered investors a 50bp pickup versus where a new Lindley 10-year would price today, according to bankers and investors. At least 160 accounts participated in the deal, with US accounts representing 54%, LatAm 25%, Europe 17%, and Asia 4%. Asset managers, pension funds and private banking took the top tickets. The issuer is raising funds to repay a $100m unsecured loan with Rabobank, a $38.6m secured credit facility with Interbank, and other debts. Ajecorp is a Netherlands-incorporated subsidiary of Grupo Embotelladora Atic, a holdco for the Ananos family, which controls the bottler known as Aje. The notes are unconditionally guaranteed by Atic and some of its subsidiaries. Bank of America Merrill Lynch led the deal, with Interbank, Jefferies and Rabobank acting as joint lead managers. The deal followed a 3-continent road show which put the issuer in front of more than 100 investors. More Peruvian debutants are expected this year, with investors hungry for defensive credits out of a country that has produced relatively few international corporate issuers to date.
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Canadian Plans Bond for Panama Copper
Inmet Mining has started meeting investors in the US and Europe ahead of a $1bn bond sale to fund the development of the Cobre Panama copper project. The B1/BB minus Canadian-based global miner began in Monday in Toronto, and will see accounts in New York, New Jersey, Maryland, Boston and London before wrapping up in California and pricing May 15. A $1bn 8NC4 144A bond should follow, market conditions permitting. Proceeds will be used to help fund development costs for the planned $6.18bn Cobre Panama copper project in Panama, of which Inmet has an 80% share, through its Minera Panama subsidiary. Citi, Credit Suisse, BAML, Morgan Stanley and RBC are managing the transaction. The other 20% of Cobre Panama is held by Korea Panama Mining Corporation (KPMC). Inmet is engaged in the production of, development of and exploration for base metals with a primary focus on copper and zinc.
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Celpa Readies Debentures for Recovery Plan
Brazilian utility Centrais Eletricas do Para (Celpa) plans to sell BRL650m ($337m) in convertible debentures as part of a bankruptcy recovery plan that also contemplates a 40% haircut on existing debt, it says. The 2027 bonds would come with a 15% coupon, and feature a grace period until December 2015. They would be mandatorily convertible into equity at Celpa’s discretion, though the utility does not give details of the conversion price. A meeting with creditors to discuss the plan is to be held within 120 days. An official at parent Rede Energia declines to offer additional details of the bond sale. The plan also includes Celpa’s obtaining a new BRL200m credit line through the end of 2013. Rede owns 66% of Celpa, and Eletrobras 35%.
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Colombian Gas Transporter Eyes Bond Markets
Colombia’s Promigas is monitoring market conditions as it considers issuing international bonds for the first time. “We have seen appetite for natural gas bonds and are doing due diligence in the market,” Promigas CFO Aquiles Mercado Gonzalez tells LatinFinance. Colombia’s second-largest gas pipeline operator is in dialogue with banks for a possible international deal this year, but has yet to decide on tenor and size. Promigas expects to make advancements on its bond plans late May or September with board approval, Mercado adds. A local market bond sale would also be an option, he says. The official highlights peer Transportadora de Gas Internacional’s (TGI) $750m 10NC5 bond success in March as a reference point for his company. TGI saw $5bn in orders before pricing the 2022s at par with a 5.70% coupon to yield UST+342.6bp. Promigas expects to increase capital investments over the next 3 years by $600m at Promigas and its subsidiaries, which will require debt funding, says Fitch, which has a BBB minus rating for the company. It also has around $300m in debt maturities coming due over the next 2 years, the agency adds. Promigas last sold bonds in the domestic market in August 2009, raising COP400bn ($197m) at various maturities, via Bancolombia. Last year, Corficolombiana, Empresa de Energia de Bogota and 2 private funds acquired a 52.13% stake in Promigas for $789.7m from AEI.
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Edesa Puts Bond to Bed
Argentina’s Empresa Distribuidora de Electricidad de Salta (Edesa) has finally priced a $63m 2017 bond, after postponing issuance plans in February. The Argentine utility priced the RegS-only bond at 95.125, with a 12.75% coupon, to yield 14.25%. “When you look at Edenor trading at around 19%, EDESA at 14.25% does not look that bad. The juicy yield was necessary to compensate investors for the country, industry, use of proceeds, small illiquid issue size, new ownership, the tight or inexistent free cash flow, and the FX mismatch between USD debt and Argentine cash flow,” says a fixed-income investor. The B2/B rated electricity distribution company from the Salta province raised funds to repay existing debt. Deutsche Bank was sole lead on the transaction. Itau and Standard were mandated on an original deal, which was postponed when the CEO of Edesa’s controlling shareholder Edenor resigned.
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Ferreyros Preps Bond Debut
Peruvian heavy machinery distributor Ferreyros is taking steps to issue a $100m-$200m 10-year bond this year, in what would be a debut in the international market. “All eyes are on Peru, rates are low and we want to take advantage of that,” CFO Patricia Gastelumendi tells LatinFinance. The Lima-based distributor for Caterpillar, Atlas, Copco and other brands is analyzing different options but would prefer to issue bonds by its holding company backed by guarantees from subsidiaries. Proceeds would be used to extend its debt maturity profile and could also be used to help finance a $75m agreement with CAT Global Mining for the purchase of the Bucyrus brand line of machinery and equipment. Gastelumendi says Ferreyros will consider 8 banks – both local and international – in its selection for two bookrunners, and expects to make advancements in the selection process by September. Prior to the bond, Ferreyros plans to complete a corporate reorganization in July, splitting its operations into automotive and machine units, both under a single hocldo. In February, Ferreyros raised PES170m ($63m) in an equity capital raise open to existing shareholders. It placed 73.36m shares at PES2.28 each, representing 98% of the 75m in the first round. It completed the second round in which it placed the addition 1.7% shortly thereafter. “A lot of investors want Ferreyros paper who didn’t participate in the shares placement. This would be an opportunity to invest in Ferreyros,” says Ferreyros Treasurer Liliana Montalvo. Ferreyros imports and sells machinery, engines, motor vehicles and parts and leases machinery and equipment and provides repair shop services under 8 subsidiaries. The company has reported net sales of $377.6m in the first quarter of 2012, up 25% from the same period last year.
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Inbursa Preps MXP Bond
Mexico’s Banco Inbursa plans to issue up to MXP5bn ($379m) in 3-year floating-rate notes in the domestic market May 15, according to a regulatory filing. Actinver, BAML, Banamex and Inbursa are managing the transaction, rated AAA on a national scale. Inbursa last issued in February 2012, pricing a MXP3.5bn 2-year at TIIE+20bp.
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ICE Retap Draws Crowd
Costa Rica’s Instituto Cosarricense de Electricidad (ICE) reopened its 6.95% 2021 bonds for $250m, taking the outstanding size to $500m. Starting at 103.00 guidance before revising to105.00, the state-owned integrated electricity provider and telecommunications operator retapped the bonds at 105.00 to yield 6.244%. “Before tightening, they started at 103 and got a lot of demand,” says an investor who saw a 1 point discount from a 106 pre-announcement level. Books were heard 10x subscribed, though some orders were heard falling on the tighter launch. “Scarcity value, but tightened too much,” says a senior portfolio manager following the trade. Proceeds from the reopening will be used to fund Grupo ICE’s capital investment plan. Citi and Deutsche Bank led the Baa3/BB+ sale, as they did the original deal in November. The original bond priced to yield 6.95%, and was the issuer’s first cross-border deal since 2004.
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Peruvian Lands Securitization
A project for Peruvian government-backed health service EsSalud has raised $229.4m through the sale of 2029 bonds. Utilizing a structure similar to IIRSA’s 2008 road construction financing, the Peru Payroll Deduction special purpose vehicle has issued a zero-coupon bond, which ultimately provides investors with a return equivalent to a 5.5% yield, in line with 5.5%-area guidance. Investors were heard putting in for about $500m in orders, with buyers coming 33% from LatAm, 33% from the US and 33% from Europe. The transaction is backed by certificates, known as “retribucion por inversiones – certificado de avance de obras” (RPI-CAOs), to receive payments from EsSauld related to the construction and equipment provision of 2 hospitals and 2 medical distribution centers in Lima. The RPI-CAOs provide future cash flows in aggregate of approximately $230m. The certificates are purchased by the special entity, with the expected proceeds of $150m at the present value discounted at 5.5%, reflecting a price of 63.72. The payments are guaranteed by the future flows of mandatory deductions made by EsSalud from the payrolls of Peruvian workers. “There are not that many opportunities to use this type of structure, as it requires receivables for government-backed payments in dollars,” says a banker close to the deal. Bank of America Merrill Lynch managed the RegS-only sale, rated BB+/BBB minus. It was a mixed day for structured deals in LatAm, with Global Bank having to postpone a $200m covered bond sale.