CMPC has set the price for a capital raise of up to CLP230.88bn ($491m), it says. The Chilean pulp producer is planning to offer up to 156m shares to existing holders at CLP1,480 each, in an process open May 9 to June 8. The prices compares to Friday’s CLP1,769 close. Holders may receive one share per 14.26 shares held. CMPC is raising funds to help with the $2.1bn expansion of its Guaiba plant in Brazil. It is also on the road through Monday meeting fixed income investors, and could elect to issue bonds under a $500m authorization. It has also indicated that it could look to raise another $250m in new equity later this year.
Category: Equity
Posted inDaily Brief
CMPC Lays out Rights Offering Terms
Chile’s CMPC has laid out terms for an equity rights offering, the first part of a fundraising process that could see the pulp producer raise $1.25bn in debt and equity this year. It is seeking to raise about $500m through the issue of 155m new shares to existing holders, at one share per 14.26 shares held. The process will be open May 9 to June 8 and would raise CLP271.25bn ($575m) at Thursday’s CLP1,750 closing price. CMPC is raising funds to help with the $2.1bn expansion of its Guaiba plant in Brazil. It is also on the road through Monday meeting fixed income investors, and could elect to issue bonds under a $500m authorization. It has also indicated that it could look to raise another $250m in new equity later this year.
Posted inDaily Brief
Uruguayan Advances IPO
Union Agriculture Group (UAG) planned to list its shares as soon as today, ahead of an IPO that is expected in 2-3 months. The farmland developer is undergoing the listing now for tax and regulatory reasons, according to people familiar with the matter, and has begun informal negotiations with investors and could see a roadshow in about two months, followed by pricing. The transaction is expected to raise at least $50m, by selling up to 2bn shares to the country’s pension funds and up to 200m shares to retail investors. It would be the country’s first IPO since 2006. UAG is raising funds for further land acquisitions, of about 35,000 hectares. There are no bookrunners attached to the deal. UAG targeted $200m in its abandoned 2011 SEC-registered IPO, led by JPMorgan and Credit Suisse. It has since raised more than $100m in equity capital through private transactions. A US-registered deal is not off the table and could be pursued later this year after the Montevideo sale, according to a person with knowledge of the matter. NZ Farming Systems Uruguay raised $82m-equivalent in a 2006 IPO, the last local Uruguayan deal, according to Dealogic data.
Posted inDaily Brief
Airline Seeks Equity Funds
Latam Airlines Group is looking to raise $1bn in new equity to finance its investment plan, it says. Shareholders are to vote on the matter June 11. The airline is planning to spend $4.85bn through 2015 to upgrade its fleet, and is also looking to reduce debt levels in pursuit of an investment-grade rating.
Posted inMagazine
Equity: Sempra charges up Mexico
Equity markets showed further signs of life heading into the second quarter, with a busy run from Brazil set to match a heavy start to the year by top Mexican […]
Posted inDaily Brief
Fresnillo Nets Block Sale
Mexico’s Fresnillo has sold GBP222m ($344m) in shares to shareholder First Eagle Investment Management, to meet a free-float obligation. The miner sold 19.6m shares, or a 2.68% stake, for GBP11.30 each, it says. The level represents a 2.0% discount to the previous closing price. The deal means that Fresnillo is compliant with a FTSE regulation requiring a minimum 25% free-float.
Posted inDaily Brief
Smiles Up, Seguridade Down in First Session
Last week’s pair of large well-bid Brazilian IPOs had contrasting fates in their first day of trading. Smiles, which raised BRL1.13bn ($565m) but priced near the low end of the range, was up 6.0% to BRL23.00 Monday. BB Seguridade, meanwhile, sank 2.4% to BRL16.60, after pricing its BRL11.48bn IPO near the top of its range last week. The carve-out of Banco do Brasil’s insurance business drew 3x demand, and was bought 65% by international investors. Smiles, the mileage reward business of airline Gol, was multiple times oversubscribed. Brazil’s Bovespa was up 1.17% Monday.
Posted inDaily Brief
Vapores Advances Rights offer
Chile’s Compania Sud Americana de Vapores has approved a $500m equity capital raise, it says. The Grupo Luksic-controlled shipping company is looking for funds after agreeing earlier this year to spend $570m on new ships from Samsung for delivery in 2014, and exercising an option to prepay $258m in debt. It will also use a loan of up to $140m with Bladex to prepay the debt. The timing remains unclear. Vapores shares closed Monday at CLP42.01 ($0.001)
Posted inDaily Brief
BB Seguridade IPO Tops $5bn
Banco do Brasil’s BB Seguridade unit has priced a BRL11.48bn ($5.74bn) IPO near the top of the range and has used full overallotment options to give LatAm its largest IPO in almost four years. The insurance business carve-out is offering 675m secondary shares at BRL17.00 each, according to the CVM, above the midpoint of the BRL15.00-BRL18.00 range. The total includes a 15% greenshoe and full use of the 20% hot issue option. The sale was heard getting at least 2x in orders. As with most Brazilians daring to IPO, the business is widely considered attractive, with most of the questions leading up to the sale having revolved around the valuation. “This is a good company with solid numbers. Bank insurance is growing more quickly in the last few years than independent insurance companies,” says a Sao Paulo equity portfolio manager looking at the deal. Banco do Brasil’s pitch is that the “bancassurance” model uses the state-controlled bank’s wide reaching client channels to sell insurance products and brokerage services. Premiums sold in Brazil were up 13.4% in 2012 from 2011, the bank says, and insurance penetration in Brazil, at 1.7%, is well below developed markets. Banco do Brasil has consolidated its insurance businesses into the single BB Seguridade entity to lower costs, increase scale and be better prepared for expansion and competition with the likes of Bradesco. BB Seguridade controls Banco do Brasil’s two insurance joint ventures with Madrid-based Mapfre, and the bank has said it also plans to also expand into dental and health insurance brokerages. The entity directly controls two holdcos, one responsible for insurance brokerage activities and the other for all other insurance operations. The transaction should result in a 29% free float. Banco do Brasil, BTG Pactual, Bradesco, Citi, Itau, and JPMorgan were global coordinators on the sale, with Brasil Plural and Banco Votorantim as joint bookrunners. It is the largest IPO in LatAm since Santander Brasil raised
Posted inDaily Brief
Maxcom Tender Falls Short
Maxcom Telecomunicaciones has failed to meet minimum requirements for the completion of a debt and equity buyback, it says, and will cancel the offer and seek other options, including bankruptcy. The Mexican telecom, counting on the process to meet an interest payment and complete a takeover by private equity investors, had received acceptance from 62% of holders of its 11% 2014 bonds and 45% of the stock as of Wednesday’s deadline. It had offered bondholders new 2020 bonds paying 7.0% during the first three years, 8.0% during the following two years and 10.0% during the final two years. The offers follow the agreement last year for Ventura Capital Privado to buy Maxcom, at an enterprise value of about $270m.