Brazil’s Ambev says it will buy back $385.6m of shares in its subsidiary Quilmes Industrial, following the expiration of a tender offer. AmBev accepted for purchase 3.1m class A shares at $4.125 per share, 8.2m class B shares at $41.25 per share, including 7.2m B shares held as ADS. The total represents 57% of the outstanding A shares and 94% of outstanding B shares. AmBev launched the offer December 28, and will own 99.26% of Quilmes upon its settlement February 15. Credit Suisse was dealer manager on the sale.
Category: Bonds
Posted inDaily Brief
IDB Signs Brazil Transmission Deal
The IDB has approved a $200m financing for ATE III Transmissora de Energia for development, construction, operation and maintenance of transmission lines in the Brazilian states of Para and Tocantins. It includes an A loan of up to $95.4m from the bank’s ordinary capital and a syndicated B loan of approximately $104.6m. The project, with a total estimated cost of $387m, was awarded to the Spain’s Abengoa through a public bidding process. It is developing the project through its Brazilian subsidiary ATE III Transmissora de Energia. The transmission project includes: a 500kv, 40km transmission line connecting the Maraba and Itacaiunas substations in Para; a 230kv, 110km transmission line connecting the Itacaiunas and Carajas substations in Para; a 500kv, 304km transmission line connecting the Itacaiunas and Colinas substations in Para and Tocantins; and a 500/230kv Itacaiunas substation in the state of Para.
Posted inDaily Brief
Usiminas Buys Mining Assets for $1.85bn
Brazilian steel company Usiminas has agreed to purchase three mining operations in Brazil for a total of $1.85bn, say people close to the deal. The company told the CVM over the weekend it bought J. Mendes, Somisa and Global Mineraçao for an initial payment of $925m. The deal includes an earnout agreement whereby Usiminas will pay an additional $925 based on the performance of the assets. Credit Suisse advised J. Mendes on the sale of the asset. Separately, Usiminas is heard to have just hired investment banks to arrange a syndicated loan.
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CIE to Buy Back at Least $146m in Bonds
Mexican gaming operator CIE got tenders and consents from holders of $146m, or 79%, of its 8.875% 2015 senior notes, as of the January 31 early deadline. Holders have until February 15 to tender the remaining notes for $1,025 cash per $1,000 in bonds. The repurchase is funded with excess cash resulting from recent asset sales. Citi is dealer manager.
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Sovereigns Jump In
Mexico and Colombia pounced on a fleeting January window after external turmoil had all but shut down cross-border LatAm DCM. Siobhan Morden, debt strategist at ABN AMRO, says that the […]
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Corporate Bond
High YieldComeback King In a year chock full of corporate biggests and bests, one high yield deal stood out as the trailblazer. Mexican glassmaker Vitro’s $1 billion dual tranche issue […]
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Dresdner Shutters New York DCM
Dresdner Kleinwort is effectively closing down its New York-based LatAm DCM business, save for a few sales and trading people. It is shifting resources closer to local markets, according to […]
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Local Currency Deal
Tenor Extender The standout transaction for América Móvil, one of the most savvy corporate issuers in the region, was its tenor extending 30-year Europeso issue. The deal almost slipped through […]
Posted inDaily Brief
CAF Re-Taps $250m 2017s
CAF has priced a $250m reopening of 5.75% 2017 notes at 98.007 to yield 6.041%, or 235bp over UST, in line with guidance of 235bp. “As a quality issuer, we feel it’s always important to come out in the market,” CAF VP of finance Hugo Sarmiento tells LatinFinance. “We saw this quiet period in the market as a good time to increase the liquidity of our dollar bonds.” He declined to disclose the order book size, but said it included many repeat buyers from the original $500m 2017 offering. Proceeds from the A+/A1 transaction will help expand the project loan portfolio. Credit Suisse led the sale, with HSBC and Merrill Lynch as co-managers. Sarmiento says CAF expects to follow a similar investment plan to 2007, with about $1bn equivalent to be issued. It counts dollar, Euro, and Yen issues and well as local issues in Peru Colombia and Mexico among its options.
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CAF’s Lara Tapped for Colombia Public Credit
Colombia has tapped Viviana Lara, senior executive in charge of infrastructure investment at CAF, to replace Julio Torres as head of public credit. Lara had formerly run the public credit bureau for the city of Bogota and worked in the Hacienda’s public credit department as well. “She has a lot of experience and is a very good selection,” says Torres of his successor. Market participants also lauded the nomination, saying Lara’s technical expertise is more than adequate for the role. She joins a team that includes Maria Catalina Escobar, head of international capital markets and Adriana Osorio Rincon, head of multilateral financing. The latter two were already at Hacienda and worked under Torres. Torres’ departure has been in the works for more than three months, he tells LatinFinance. Lara, who takes over public credit on February 2, has her work cut out. Colombia needs to issue an estimated $6bn in TES this year, a 30% increase over 2007, and do so amid adverse market conditions that could lead to higher spreads. “This year will be a very difficult year for TES issuance, especially given how much of it has to get done,” notes Ricardo Duran, head of economic research at Corredores Associados in Colombia. He believes Lara is a good choice for the role.