CVC Brasil Operadora e Agencia de Viagens has filed for an IPO, according to the CVM, with the all-secondary transaction representing a second attempt for controller Carlyle to sell down its position. The travel services provider filed initial documents in 2011, and was one of many Brazilians that elected not to launch amid complicated market conditions during that period. US private equity firm Carlyle holds 63.2% of CVC, with almost all of the remainder held by the founders. The sellers do not indicate their target post-float holdings, and the initial prospectus doesn’t specify size or timing. Bank of America Merrill Lynch, BTG Pactual, Itau, JPMorgan and Morgan Stanley reprise their roles as managers. CVC booked BRL197m ($90m) in Ebitda during the first three quarters of 2013, compared to BRL207m in the corresponding period of 2012. It had BRL172m for all of 2012 and BRL281m in 2011. CVC was founded in 1972, with Carlyle entering in 2009. The issuer will hope markets in 2013 will be more cooperative, and that the widely-present operator’s name recognition of the will help the sale. In the immediate future, Mexico’s Grupo Lala is scheduled to price today an IPO that is targeting nearly $1bn-equivalent.
Category: Equity
Artha Brings out CCD Follow-up
Artha Capital has made the initial closing of a new certificado de capital de desarrollo (CCD) fund, according to regulatory documents, raising MXP754m ($58m). The Mexican investment firm has a MXP1.56bn target for the 2023 fund that it plans to reach through capital calls. The fund, Artha’s second CCD, will target investment in commercial, office, industrial and mixed-use real estate. The fund will feature the return structure common to CCDs and to private equity – investors receive their investment plus a 9% preferred return, with additional proceeds divided 80%-20% between investors and the manager. BBVA Bancomer and Banorte-Ixe managed the transaction. Artha’s original CCD raised MXP2.57bn in 2010. It was founded in 2009 by ex-banker Carlos Gutierrez and real estate executive German Ahumada.
Ripley Seeks Capital Raise
Ripley Chile is preparing to raise CLP85.6bn ($172m) in equity, according to a regulatory filing. Shareholders will vote on the matter October 29. The retailer plans to issue CLP25.6bn in a first part and CLP60bn in a second.
Commercial Developer Prices Fibra
Mexican developer Grupo Danhos has priced an IPO of its Fibra real estate fund that should raise MXP5.98bn ($454m), with the deal coming at the bottom of the range. The developer is selling 200m primary shares at MXP26.00 each, according to people familiar with the matter, meaning a MXP5.98bn total assuming a 15% greenshoe is included. The price comes versus a MXP26.00-MXP28.00 price range. Roughly 40% of the deal was expected to be placed with international investors, and the remainder in Mexico. The Fibra Danhos fund begins with four shopping centers, four office buildings and three mixed-use properties, all in Mexico City, and is raising money to expand them and to add to the portfolio. The developer was betting that a combination of office and commercial properties focusing on “premier” tenants – its list includes OHL, Cinepolis, Liverpool, the IDB, Sanluis, Grupo Sura, Cisco and Alsea – would distinguish it enough from existing Fibras to attract investors who may have had their fill of the growing asset class, which now features a few deals trading below original offer price. BBVA and Goldman Sachs were global coordinators on the transaction, with Evercore as structurer and domestic bookrunner and Banorte-Ixe and Inbursa as co-managers. The deal brings Mexico’s ECM issuance total, already at a record level, to $10.48bn from 16 deals so far this year, according to Dealogic data. Hotel operator Grupo Hotelero Santa Fe was also due to price an IPO Tuesday night, targeting MXP4bn.
US Manager Close to CCD
Private equity real estate investment firm Walton Street Capital was due to close books Tuesday for its Mexican certificado de capital de desarrollo (CCD) fund, according to regulatory documents, raising MXP1bn ($76m) of the MXP5bn final target. The remaining MXP4bn is to come through capital calls. The US shop is preparing a fund investing in a broad array of Mexican real estate assets, potentially including residential, commercial, industrial, retail and even hospital assets, according to a prospectus. The return structure follows the typical format for CCDs – a preferred return, in this case 8.5%, followed by an 80%-20% division of additional proceeds between investors and the manager. Walton expects 16%-20% total return for investors. Banorte-Ixe and Banamex are managing the transaction. Walton has been a co-investor in other issuers’ real estate CCDs in the past two years, including deals from Construtora Planigrupo and Finsa.
Mexicans Ready to Kick off IPO Pipeline
Real estate plays Grupo Hotelero Santa Fe and Fibra Danhos are scheduled to price IPOs today targeting MXP4bn ($304m) and MXP6bn, respectively, as the October ECM issuance window gets underway. Hotel operator Santa Fe plans to sell 201m shares, if a 15% greenshoe is included, at MXP18.00-MXP22.00 each, meaning a MXP4.03bn size at the midpoint. The issuer expects 84% of the deal to consist of primary shares, and the remainder to be secondary shares sold by investors Nexxus Capital and Walton Street Capital. Santa Fe is raising funds to repay debt and for expansion. It expects a 49% free-float following the transaction, not counting the greenshoe, with 37.5% held by developer Grupo Chartwell, 8.3% by Nexxus and 5.3% by Walton Street. Barclays and JPMorgan are managing the international portion of the transaction, and BBVA and Santander the Mexican portion. Santa Fe operates 10 hotels in five Mexican states, including a mix of city and beach resort properties, under brands including Hilton, Hampton Inn, Hyatt and Krystal. Danhos, meanwhile, offers 200m shares at MXP26.00-MXP28.00 each, according to offering documents, meaning a MXP6.21bn sale at the midpoint if a 15% greenshoe is included. The transaction includes both Mexican and international tranches. The fund begins with four shopping centers, four office buildings and three mixed-use properties, all in Mexico City, and is raising money to expand them and to add to the portfolio. BBVA and Goldman Sachs are global coordinators on the transaction, with Evercore as structurer and domestic bookrunner and Banorte-Ixe and Inbursa as co-managers.
Sanepar Targets Equity
Sanepar is preparing to raise BRL797m ($360m) in equity capital, it says. The waste water utility backed by the state of Parana plans to place 62.5m shares at BRL12.75 each. It does not yet indicate the timing of the transaction. Bradesco, BTG Pactual, Credit Suisse are working on the process. Sanepar is also on the process of placing BRL300m in domestic bonds.
Anima Lines up Bovespa Debut
Anima Educacao has set a target of more than BRL500m ($227m) for its IPO, scheduled to price October 24. The Brazilian for-profit education company plans to sell 21.1m primary shares and 4.1m secondary shares at BRL16.50-BRL22.00 each, according to a filing, meaning a BRL543m size at the midpoint if a 15% greenshoe is included. Secondary shares are being sold by a private equity fund linked to BR Investimentos, which bought into the company last year and holds a 30.5% stake. Anima is raising funds to expand organically and through acquisitions. Bank of America Merrill Lynch, HSBC and Itau are managing the sale. Anima booked BRL215m Ebitda in 1H 2013, up from BRL158m in 1H 2012. Its 2012 full-year Ebitda reached BRL324m, up from BRL254m in 2011. It appears Anima and fellow education company Ser are the only Brazilians proceeding with IPOs in the current issuing window, with vehicle services providers Sasacr, Unidas and Ouro Verde filed but not launched. Iron parts manufacturer Tupy is next up to issue, with a follow-on targeting more than BRL600m.
Gener Targets Additional Funds
Shareholders of AES Gener have approved a $450m equity capital increase, the generator says. The Chilean is looking for proceeds to help fund projects. The move is likely part of an $800m target, according to remarks made by CEO Luis Felipe Ceron cited in wire and local press reports, with the remainder done in the DCM.
Interacciones Launches Re-IPO
Grupo Interacciones is targeting more than MXP4.0bn ($303m) in an equity transaction scheduled to price October 16. The Mexican specialist in public sector and infrastructure lending has a small and illiquid float, meaning the transaction is functioning as a re-IPO. The financial group anchored by Banco Interacciones is offering 30m primary shares and 30m secondary shares at MXP60.00-MXP69.00 each, meaning a MXP4.45bn deal at the midpoint if a 15% all-primary greenshoe is included. The issuer is raising proceeds to expand operations, specifically sub-sovereign and infrastructure lending. Secondary share sellers include controller Carlos Hank and members of his family. The lender expects a free float of at least 31%, with the Hank family taking its stake from 90% to below 70%. The group had MXP140.17bn in assets and the beginning of this year and booked MXP1.41bn in net income during 2012, up from MXP1.34bn in 2011. Barclays and Credit Suisse are global coordinators, with Banorte-Ixe and GBM as bookrunners on the domestic portion.