Category: Economy & Policy

Mexican auto parts maker Nemak has reopened its 2014 floating rate peso bonds for MXP1bn at a spread of TIIE plus 48bp. The deal came exactly in line with price expectations, says a banker on the deal. In November, Nemak issued the bond at 45bp over TIIE. The extra three basis points are due to added market volatility seen in today’s environment, says the banker. HSBC managed the deal.

Mexico’s Nemak is expected re-open its 2014 floating-rate notes Wednesday, for an amount that remains to be set. The auto parts maker sold MXP2.5bn of the bonds at 46bp over 28-day TIIE in November, and could see a similarly sized placement this week. Nemak plans to use proceeds from the mxAA rated deal for general corporate purposes. HSBC is managing the sale. Separately, brewer and bottler Femsa completed a roadshow Friday supporting an issue of MXP1.5bn in 2011 bonds to be priced at a spread over 28-day TIIE. The short tenor is apparently a point the corporate wants to fill on the curve. The mxAAA rated sale is expected the week of May 19 and proceeds will refinance debt. HSBC is also managing the Femsa debt issue. The Mexican pipeline is holding steady, as retailer Soriana has also made an initial filing for an unspecified bond issue via Inbursa, JPMorgan and Banamex.

Mexico’s TMM Division Maritima has priced MXP1.55bn in 2028 bonds backed by future flows from 5-year service contracts with Pemex. The notes priced at 195bp over 28-day TIIE and the deal was nearly 2x oversubscribed, according to a banker managing it. The provider of maritime, logistics, and port and terminal management services will use proceeds for general corporate purposes. Value Casa de Bolsa managed the sale.

Cemex priced MXP1bn in 2010 floating-rate bonds, at TIIE plus 36bp, in line with guidance. The Mexican building materials provider had filed to sell 2018 fixed-rate notes at the same time but ended up not following through with that portion, citing weak market appetite for the notes. The AA+ transaction was 1.2x oversubscribed, with pension funds, insurance companies and other institutional investors composing the book. Cemex plans to repay short-term debt with the proceeds. Santander and ING managed the sale.

Mexico’s Megacable has raised a dual currency loan denominated in pesos and dollars worth $260m, say bankers on the deal. The 2.4-year average life amortizer pays TIIE plus 65bp on the peso portion, and 65bp over Libor on the dollar portion, with roughly half allocated to each tranche. BBVA and JPMorgan led, with Scotia, BofA, Banamex, Rabobank and Santander as co-leads.

Mexico’s Grupo Posadas priced MXP1.5bn in 2013 floating-rate bonds at 180bp over the 28-day TIIE. The hotel operator had originally planned to also offer up to MXP1bn in 2018 notes, but cancelled the sale due to low demand, it said. Even after shifting all demand to the five-year tranche, the issue was only slightly oversubscribed, says a banker on the transaction, as it was the first time in Mexico a single A issuer had done five-year bonds. A single A credit was always going to be a difficult, says a banker away from the transaction, and 10-year credit was a long shot. Posadas plans to use proceeds to fund a buyback of dollar-denominated debt. As of March 31, it had received tender commitments from a majority of holders of its $225m outstanding 8.75% 2011 bonds, in an offer expiring April 11. Credit Suisse is dealer manager on the tender and also managing the debt sale. Ixe, JPMorgan, BBVA and ING were co-managers.

Argentina placed ARP867m ($274.6m) in 2013 bonds paying interest at 350bp over the Badlar rate, according to the economy ministry. Demand for the Bonars reached ARP1.827bn in the auction closed yesterday. The government was looking to sell ARP700m-ARP1bn in new bonds. With the Badlar for the first interest period set at 8.51%, the government said the initial payment will be 12.01%. The transaction was self-managed.

Argentina plans to issue ARP700m-ARP1bn in a new floating-rate 2013 Bonar bond, according to the economy ministry. The bonds will be sold in an auction Friday, paying 350bp over Badlar. The deal is understood to be self-led.

Mexico’s Invex bank has priced MXP1.25bn in 2033 bonds backed by revenues generated by the TUCA tunnel concessionaire in Acapulco. The AA+ rated issue priced at 182-day TIIE plus 262bp. Value Casa de Bolsa managed the sale.

An oil refining joint venture between PDVSA and Petrobras is to be discussed today at a Chavez-Lula meeting in Recife, according to the Venezuelan ministry of information, which cites Pernambuco’s governor Eduardo Campos. The new company would operate the $4.5bn Jose Inacio Abreu e Lima refinery, built by PDVSA and Petrobras in Recife, and a petrochemicals facility to be erected nearby.