Brazilian for-profit educational operator Ser Educacional has filed documents for an IPO likely to be attempted during the September-October window. The exact size and timing remain to be set for the transaction, which is to include primary shares and secondary shares sold by holders including founder and controller Janguie Diniz, according to regulatory documents. The educator focused on Brazil’s rapidly growing North and Northeast is raising funds for acquisitions and organic growth. Ser Educacional claims to be the biggest educator in these two regions, and booked BRL85m ($36m) in Ebitda in 1H 2013, up from 49m in 1H 2012, and BRL90m in all of 2012, up from BRL56m in 2011. BTG Pactual, Credit Suisse, Goldman Sachs and Santander are managing. Fellow educator Anima Educacao is also expected to file soon. They would join a pipeline featuring IPOs from vehicle services companies Ouro Verde, Unidas and Sascar, and a follow-on from auto parts manufacturer Tupy.
Category: Equity
Caixa Preps Petrobras FII
Brazil’s Caixa Ecnomica Federal is preparing a BRL789m ($332m) fundo de investimento imobiliario (FII) transaction, anchored by a property used by Petrobras, according to the CVM. The Cidade Nova FII will target 100% of a special purpose vehicle (SPV) holding the Edificio Cidade Nova building, home to the state oil company’s corporate training center. The transaction is contingent on raising enough funds to cover 100% of the SPV. The timing for the closing remains to be determined. Caixa is managing the sale itself.
Ventura Launches Maxcom Offer
Ventura Capital Privado has opened its offer for the outstanding shares of Maxcom Telecomunicaciones, according to regulatory documents, a part of the Mexican telecom’s bankruptcy process. In an offer that could total as much as MXP764m ($59m), the private equity firm is offering MXP0.97 per class A share, MXP2.90 per CPO share and MXP20.30 per ADS. Each ADS represents seven CPOs, and each CPO represents three A shares. The offer expires September 26. Maxcom filed last month for bankruptcy in the US, it says, advancing its debt restructuring plans. Holders representing more than 98% of the Mexican Telecom’s 11% 2014 bonds accepted the plan. Maxcom sees an emergence from Chapter 11 by “early fall.” Ventura has also agreed to put in $45m cash into Maxcom. All creditors will be paid in full under the its plan, except for the 2014 holders, who are to receive 2020 step-up notes plus cash for unpaid interest. Maxcom will issue up to $200m of the 2020s, which pay interest starting at 6% and step up to 8%. Lazard is advising Maxcom.
American, Mexican Team up for Hotel CCD
US hotel-focused private equity firm Brilla Group and Mexican real estate investor IGS are preparing a certificado de capital de desarrollo (CCD) transaction in Mexico’s domestic market, according to regulatory documents. The BRI-IGS fund created will invest in hotel assets throughout Mexico. The target size, to be reached through capital calls, remains to be determined. The fund plans to spend five years making investments and five years exiting. Investors are to receive the principal invested plus a 10% preferred return, with remaining profits divided 80%-20% between investors and the managers. The managers expect an 18% return overall. Actinver is managing the transaction, for which the timing remains unclear. The deal would be the first real estate CCD focused on hotels, and follows several hotel plays appearing in Mexico’s public equity markets, all to take advantage of the increasing domestic travel forested along with expected GDP growth.
Manufacturer Reboots Equity Plan
Brazil’s Tupy has restarted plans for an equity follow-on, according to the CVM, after postponing earlier this year a deal expected to raise as much as BRL1bn ($410m). The iron parts manufacturer plans to offer primary shares, as well as secondary shares owned by BNDES and the Previ and Telos pension funds. The exact target size and timing has not been indicated, though a refiling now would have it ready to hit the September-October window if market conditions allow. Banco do Brasil, Brasil Plural, BTG Pactual, Citi and Itau are managing the sale, with Brasil Plural added since the first attempt. Tupy is looking for funds to invest in expansion and in projects that will help lower its costs. The auto parts specialist operates in Brazil and Mexico, and booked BRL337m in Ebitda in 2012. There are several Brazilian deals in the pipeline hoping for a reduction in the volatility seen recently and the negative headlines surrounding Brazil’s economy. Airline Azul postponed its plans earlier this week. Vehicle services companies Ouro Verde, Unidas and Sascar have all filed for IPOs. Other debutants expected to file soon include education companies Grupo Ser, via BTG Pactual, Credit Suisse, Goldman Sachs and Santander, and Anima Educacao, with Bank of America Merrill Lynch and Itau.
CCU Sets Pricing Target
Chilean beverage company Compania Cervecerias Unidas (CCU) is expected to determine the price for its equity follow-on of up to CLP340bn ($660m) September 13. The issuer plans to close books on the portion of the transaction done through a bookbuilding operation September 12, according to regulatory documents, meaning the price should be disclosed September 13. The bookbuilding portion accounts for 22.6m of the 51m primary shares on offer, with the remaining 28.4m to be sold in a preferential rights period for existing holders open from September 13 to October 4. The 22.6m CCU shares sold in the first portion represent rights to shares waived by controller IRSA. IRSA, owned equally by Heineken and the Luksic family’s Quinenco vehicle, should control 60% of the company post-float, with the market holding the rest. The 51m shares would raise CLP354.71bn at Wednesday’s CLP6,955 closing price. CCU is raising funds for organic growth and acquisitions. The issuer has been meeting investors since this week. JPMorgan, Citi, Deutsche Bank, and Goldman Sachs are managing the international portion, which will include shares sold in the form of ADR. LarrainVial and BanChile are handling the local portion.
CCU Heard Meeting Investors
Compania Cervecerias Unidas (CCU) is meeting with equity investors this week, according to a person familiar with the preocess. The Chilean had previously hired JPMorgan, Citi, Deutsche Bank, and Goldman Sachs for an international portion of an equity follow-on, with LarrainVial and BanChile handling a local portion. The Chilean beverage company is working under an approval for a CLP340bn ($661m) equity capital raise to help fund expansion plans, and planned to issue 51m shares. The new funds are an important move for the Chilean beverage company, say people familiar with its plans, and will allow it to finance growth, including increasing production. CCU plans to invest CLP1.35bn through 2020, and is also preparing to tap the domestic bond markets. In April, CCU registered up to UF10m ($454m) in domestic bonds, a shelf to be used in the event of non-organic growth needs, according to a person familiar with the registration.
Transportation Services Manager Joins IPO Queue
Brazil’s Sascar has become the latest transportation management company aiming to IPO in the September-October window, joining Unidas and Ouro Verde. The specialist in vehicle services including security, tracking and fleet management plans to sell primary and secondary shares. The size and exact timing remain to be set. It plans to use 80% of the proceeds for acquisitions and 20% for improving its capital structure. Initial documents don’t specify the selling shareholders in the secondary portion. Sascar is 46% owned by a vehicle controlled by private equity firm GP Investimentos. Bank of America Merrill Lynch, Bradesco, BTG Pactual, Credit Suisse and Itau have been hired to manage the transaction. Sascar booked BRL84m ($35m) Ebitda in 2012, up from BRL66m in 2011. Klabin and Via Varejo are possible follow-ons for the September-October issuing period. Azul postponed plans for an IPO Monday.
Vapores Launches Rights Offer
Chilean shipping company Compania Sud Americana de Vapores has launched an equity rights offering targeting up to $327m, it says. It is selling up to 6.75bn new shares at CLP24.90 ($0.05) each through September 18. The sale comes under a $500m approval received earlier this year, and the company says it does not rule out holding an additional sale to bring the fundraising to that target. The Grupo Luksic-controlled is raising funds to purchase new vessels and prepay a $260m loan from American Family Life Assurance Company. It also planned to use a loan of up to $140m with Bladex to prepay the debt.
Argentina Gold Project Secures Financing
Minera IRL will receive up to $80m funding for the Don Nicolas gold project in Argentina’s Santa Cruz province from investment fund Compania Inversora en Minas (Ciminas), the Latin American gold mining company says. The package breaks down into a $35m bridge loan and $45m equity investment. Ciminas takes a 45% equity stake in Minera IRL Argentina subsidiary MIRL Patagonia. Minera comes away with 51% ownership, with 4% going to the arrangers of the transaction, LatinFinance understands. Buenos Aires Advisors advised Minera, according to Minera. The equity investment Ciminas has made gives it a combination of common and preferred shares in Minera Patagonia. The preferred shares have preferential rights in terms of early repayment and conversion rates. The $80m is expected to be enough to allow the company to develop the mine and begin production and generate positive operating capital.