CVC Brasil Operadora e Agencia de Viagens has priced a BRL621m ($236m) IPO and brought yet another Brazilian debut below the bottom of the range. The 38.8m secondary shares priced at BRL16.00 each, according to the CVM, versus a BRL18.00-BRL22.00 range. The total includes a 15% greenshoe. The transaction should represent about 30% of the company. US private equity firm Carlyle, invested in CVC since 2009, is selling 64% of the shares on offer, with co-founder Guilherme Paulus selling almost all of the remainder. Bank of America Merrill Lynch, BTG Pactual, Itau, JPMorgan and Morgan Stanley managed the transaction, which represents CVC’s second attempt at an IPO after a 2011 filing. Fellow Brazilian Via Varejo is scheduled to hold a follow-on next week, to likely close out the Brazilian ECM calendar for 2013.
Category: Equity
Brake Maker Seeks Equity Capital
Fras-le, a Brazilian maker of vehicle parts that is part of the Randon group, is planning to raise funds through a follow-on equity offering, it says. The size and timing have not been determined, though initial filings with regulators in December are likely done with an early 2014 issue in mind. It plans to offer both primary and secondary shares. Banco Votorantim and Santander have been hired to manage. The specialist in brake parts exports to about 80 countries. Fras-le’s preferred shares, which trade in low volumes, closed at BRL 5.84 ($2.44) Wednesday.
Travel Agent Set for IPO
CVC Brasil Operadora e Agencia de Viagens is scheduled to price an IPO today targeting more than BRL700m ($294m). Books were at around deal size as of Wednesday afternoon, according to people following the sale. The Brazilian travel services provider is offering 38.8m secondary shares, assuming a 15% greenshoe, at BRL18.00-22.00 each, meaning a BRL776m deal at the midpoint. The base deal represents 26.02% of the company. US private equity firm Carlyle, invested in CVC since 2009, is selling 64% of the shares in the base deal, with co-founder Guilherme Paulus selling almost all of the other 36%. Bank of America Merrill Lynch, BTG Pactual, Itau, JPMorgan and Morgan Stanley are managing the transaction, CVC’s second attempt at an IPO after a 2011 filing. Fellow Brazilian Via Varejo is scheduled for next week, to likely close out the Brazilian ECM calendar for 2013.
CCD Targets Mexican Residential Developers
Gaia Capital is preparing a credit-focused fund of up to MXP1.2bn ($92m) for Mexico’s certificado de desarrollo de capital (CCD) market, according to a prospectus. The 10-year fund is targeting MXP240m in the first close, and build the remainder through capital calls. Gaia is a new entity formed this year by former Sociedad Hipoecaria Federal (SHF) head Javier Gavito and several other former SHF officials. It will use the funds raised from Afores to invest in mezzanine debt from Mexican residential developers, though it may make other types of investments. Investors would receive initial capital plus an 8.0% preferred return, before proceeds are split 80%-20% with the manager. Finamex is managing the transaction, with VAR as structuring agent.
Brazilian to Fund Project with Local Converts
Brazilian pulp producer Klabin plans to raise BRL1.7bn ($726m) for a cellulose plant through the sale of convertible bonds in the domestic market, it says. Up to BRL1.3bn of the issue is to be guaranteed by Singapore sovereign wealth fund Temasek and the Linga group. The debentures will pay 8.0%, with principal adjusted by changes in the BRL/USD exchange rate, and are mandatorily convertible to Klabin units in January 2019 – or January 2018 at the issuer’s discretion if the Puma project in Brazil’s southern region is complete. The debentures would convert to units – consisting of one common and four preferred shares – at a price of BRL62.50 per unit. Klabin common shares closed at BRL11.60 Friday, and preferred at BRL12.10. Itau is managing the transaction. The BRL5.8bn Puma project is expected to be completed by 2016.
BTG Chile Targets RE Fund
BTG Pactual Chile is preparing a new fund focused on real estate development investments in Chile and Peru, it says. The fund is targeting a size of $100m, for investment in residential, office and commercial property. It would be the second and largest such fund, after a $45m fund raised last year. BTG is currently marketing the fund.
Unidas Looks for 2014 IPO
Brazilian fleet rental and sales company Unidas has officially asked regulators for a postponement of its IPO registration until February, it says. The move confirms what the market expected, after the issuer filed for an IPO in July but never launched. Brazilian equity issuers towards the smaller end of the scale – Unidas never gave an official size, but had BRL205m ($90m) Ebidta last year – are waiting to see if the first half of 2014 offers friendlier market conditions. CVC Viagens, targeting BRL700m, and Via Varejo, expecting BRL3.6bn, are scheduled to price next month. BTG Pactual, JPMorgan, Bank of America Merrill Lynch and Espirito Santo were working with Unidas, seeking growth funds.
Bancolombia Closer to Follow-on
Bancolombia has approved a plan under which it can sell 110m preferred shares in the domestic market, it says. A sale at the maximum size would raise COP2.72trn ($1.41bn) at Monday’s COP24,740 closing price. It is unclear if the sale would be approved by regulators in time to happen this year, and CEO Carlos Raul Yepes told LatinFinance in September that the bank would consider new equity only in 2014. Shareholders approved in March a platform to sell up to $2.4bn in preferred shares through multiple transactions. Bancolombia is looking to raise funds to help finance expansion plans and comply with new global banking regulations. The bank agreed to buy HSBC’s assets in Panama for $2.1bn earlier this year. Its most recent equity deal was a $900m follow-on earlier last year.
Carozzi Opens Rights Offer
Carozzi has launched a CLP37.5bn ($72m) equity capital raise, it says. The Chilean food and agricultural products company is offering existing holders 28.8m shares at CLP1,300 each through December 24.
Via Varejo Targets BRL3bn-plus
Via Varejo has launched its equity follow-on, aiming to raise more than BRL3bn ($1.3bn) before the final issuance widow of 2013 closes. The Brazilian retailer plans to set a price December 12 for the all-secondary sale representing the debut offering of units consisting of one of the retailer’s already trading common shares and two of its preferred shares. The operator of retail operations including the Casas Bahia and Ponto Frio chains is offering 123.7m secondary units, assuming a 15% greenshoe is included, at BRL29.60-BRL33.60 each, meaning a BRL3.66bn deal at the midpoint. Via Varejo is setting a price given the involvement of the preferred shares and illiquidity of the common shares. Common shares closed at BRL31.00 Monday, or BRL7.75 following a 4-for-1 split approved last week. The controlling Klein family is offering 80.7m units in the base deal, and fellow Brazilian retailer Compnahia Brasileira de Distribuicao (CBD) is offering 26.9m. Bradesco, Bank of America Merrill Lynch and Credit Suisse are leading, with Goldman Sachs, Itau, JPMorgan, Santander and UBS as bookrunners. The transaction should result in a 29.3% free float, according to a prospectus, with CBD holding 43.3% and the Kleins 27.4%. The issuer will have size and recognition on its side, two factors that have helped a few Brazilian deals – notably BB Seguridade – price this year amid volatility and negative sentiment towards Brazil. Travel services provider CVC is scheduled to provide a test of appetite December 5, when it prices an all-secondary IPO targeting more than BRL700m.