Colombia’s Terranum Inversion is planning to sell a tranche of new shares in its Patrimonio Autonomo Estrategias Inmobiliarias real estate fund, raising COP110.2-COP179.0bn ($58m-$94m). The fund plans to sell 14.2m-22.8m shares at COP7,840 each today through Friday, according to a regulatory filing. This compares to the COP7,757 July 8 trading level, the most recent listed on the fund’s website. Existing holders will have first crack at the new shares during the first two days of the sale period, with any remaining shares available to the public. The fund, considered to be the only asset of its kind in Colombia, acquires and manages operating commercial property throughout the country. Proceeds from this week’s sale will be used to acquire additional properties. Corredores Asociados is managing.
Category: Equity
Batista Sells More OGX Shares
Brazilian billionaire Eike Batista raised BRL75.4m ($34m) from the sale of 56.2m shares of OGX Petroleo e Gas, according to regulatory documents. The move cuts his stake to 57.18%, and is the second such move this year. In May the billionaire sold 70.5m shares to raise BRL121.8m, and called it a minimal portfolio adjustment that he didn’t plan to repeat. The EBX group oil company faces a liquidity crunch after failing to meet production goals. Its shares are 90% down in the last 12 months, and the price of its 2018 bonds has dipped below 20 cents on the dollar and has creditors bracing for a restructuring.
SMU Needs Equity Capital
Chile’s SMU plans to increase its equity capital by $500m after an accounting review revealed higher losses and a breach of debt covenants, the retailer says. The company had undervalued its store-lease obligations by CLP38bn ($75m), leading to a 4.4% drop in Ebitda that means its debt coverage ratio slipped to 1.4x, lower than the 1.5x required in its bond covenants. The equity raise will need to be approved by shareholders, and could result in an a domestic or international market public sale, it says. It does not provide additional details, but the Alvaro Saieh-controlled company has been expected to hold an IPO, which it filed for in 2011 via Celfin and Santander before putting it off. SMU sold bonds in the international market for the first time in February, raising $300m in 7.75% 2020 NC4 notes.
Banorte Specifies Follow-on Target
Banorte has given additional definition to its equity follow-on scheduled to price Tuesday, which would raise MXP29.43bn ($2.3bn) at Wednesday’s closing price. The Mexican bank plans to sell 403m primary shares, including a 15% greenshoe, and expects 201m to end up with Mexican inventors, according to an updated prospectus. The stake should represent 14.75% of the bank. Banorte indicated a $2bn base deal last week after initially aiming for $3bn. The bank will use the proceeds to pay back a loan, buy out the IFC’s remaining shareholding, and fund its purchase of insurance and pension stakes from Italy’s Grupo Generali earlier this year. Bank of America Merrill Lynch and Morgan Stanley are global coordinators and Banorte-Ixe local coordinator. Banamex, BBVA Bancomer, BNP Paribas, BTG Pactual, Goldman Sachs, Itau, JPMorgan, Mistubishi UFJ and Nomura are joint bookrunners. Shares closed at MXP73.02 Wednesday.
ICA Clinches Reduced OMA Selldown
Mexico’s Aeroportuario del Centro Norte (OMA) has priced a MXP2.76bn ($214m) follow-on of shares owned by Empresas ICA, landing at a 4.0% discount. After an initial postponing of the deal last week, the 69m secondary shares priced at MXP40.00 each, according to a filing. The total assumes a 15% greenshoe and the price compares to the previous MXP41.68 closing level Monday. OMA shares closed at MXP40.31 Tuesday. Some 60% of the deal went to international buyers and 40% to Mexicans. The stake represents 17.25% of the airport operator and was trimmed down from the 95m share deal originally planned for last week and delayed due to market volatility. The Mexican builder is selling the OMA shares through its Aeroinvest subsidiary. Bank of America Merrill Lynch was global coordinator for the deal, joined by Barclays, BBVA, Morgan Stanley and Santander as joint bookrunners. The deal comes as part of a fundraising plan to improve ICA’s liquidity position as its project backlog stalls, and follows a $380m exit from the RCO toll road partnership last month. Next up in Mexico’s ECM is the $2bn-plus follow-on from Banorte, scheduled for July 16.
Peruvian Builder Sets FO Target
Peru’s Grana y Montero is targeting more than $400m for the follow-on equity sale representing the debut of its ADS shares, according to a regulatory filing. The builder is selling 16.3m ADS, representing 81.4m common shares, at $19.70-$23.30 each in the US market, in a deal expected to price July 23, according to a person following the sale. The range indicates a $402m sale at the midpoint, assuming a 15% greenshoe is used. About 60% of the proceeds will go to infrastructure projects, 20% for acquisitions, 10% for the purchase of land for its real estate business and 10% for general corporate purposes. BTG Pactual, Credit Suisse, JPMorgan and Morgan Stanley are managing the sale, with BBVA, Credicorp and Interbank as co-managers.
LatAm equity deals hoping for take-off
OMA’s follow-on has demonstrated sellers may need to lower expectations, but hopefuls in the pipeline are pressing ahead.
Empresas Carozzi Taps Shareholders for Capital
Chilean food producer Empresas Carozzi is to tap shareholders for a $100m-equivalent capital raise, to strengthen its financial position after acquisitions and a fire at a pasta plant, LatinFinance understands. Carozzi SA owns 75.6% of Empresas Carozzi and Tiger Brands owns 24.4%. As part of financing for that raise, holdco Carozzi SA will tap its own shareholders for CLP37.5bn ($74m) via the sale of 28.8m shares. The initial offering process for the Empresas Carozzi raise is expected July 25 through August 24. Carozzi SA is owned 86% by the Biofill Group.
ICA Plans Second Pass at OMA Follow-On
Mexican construction firm Empresas ICA says it will try again to sell shares in Grupo Aeroportuario del Centro Norte (OMA) through an all-secondary equity follow-on sale which it postponed last month. ICA has trimmed the size of the offer to 69m shares, assuming a 15% greenshoe option is exercised. That equates to 17.25% of the company, and would bring in MXP2.9bn ($223m) at Monday’s closing price. In the initial follow-on plan, which was pulled on June 26 after a volatile run in equity markets, ICA targeted a sale of 95m shares, including the greenshoe option. OMA’s shares closed at MXP41.68 on Monday, having recovered from the MXP37.97 level where they traded in late June but still down from their MXP47.09 level of mid-May, when ICA first filed a shelf for the equity sale. ICA is selling the shares via its Aeroinvest subsidiary. Bank of America Merrill Lynch is global coordinator for the deal. Barclays, BBVA, Morgan Stanley, Santander are joint bookrunners.
Fibra Shop Targets MXP5.8bn in IPO
Mexican retail-focused real estate fund Fibra Shop could bring in MXP5.8bn ($443m) from its primary and secondary share offering, scheduled for July 23. The fund will sell up to 214m primary shares, including a 15% greenshoe option, and 98m secondary ones at between MXP17.5 and MXP19.5 each. Three property developers, Grupo Cayon, Grupo Aportante Frel and Grupo Central de Arequitectura are the secondary sellers. BTG Pactual, Actinver, Merrill Lynch are international leads, with Banorte joining for local distribution. The cash raised will go to finance existing loans and real estate acquisitions, and to new purchases.