Grupo Herdez will analyze refinancing options this year as it closes in on the 100% share acquisition of Mexican health and nutrition food company Grupo Nutrisa for as much as MXP2.98bn ($246m), Treasurer Marcel Gay Soto, tells LatinFinance. “We want an equilibrium of bank loans and domestic [bond] market financing at efficient costs and rates,” he says. The size of either transaction, to refinance a 2-year bank loan, remains to be determined. Herdez is considering a 10-year fixed-rate domestic bond transaction and a 5-year loan. Herdez launched Wednesday a public tender for the 33% of Grupo Nutrisa shares it did not buy directly in a January deal, it says. The food products company is offering the same MXP91.00 per share price it paid in January for the remaining shares. It targets 32.7m shares total that would give it 100% ownership. GBM is handling the tender. Nutrisa shares closed at MXP85.00 Thursday.
Category: Equity
BNDES Takes Triunfo Position
BNDES has agreed to invest BRL330m ($167m) in infrastructure specialist Triunfo, Triunfo says. The Brazilian development bank’s BNDESpar arm bought 30m shares at BRL11.00 each. The price compares to a BRL12.00 closing level Tuesday.
Chilean Turns to Equity, Local bonds
Chilean financial services company Grupo Security, which agreed in March to acquire insurance company Cruz del Sur for from the Angelini Group, plans to raise equity capital and issue domestic bonds that could total $300m-equivalent, it says. Security plans to issue approximately 368m new shares as part of a shareholder-approved capital raise, which would mean CLP71.76bn ($154m) at Tuesday’s CLP195 closing price. The proceeds will be used to help cover the $300m-equivalent Cruz del Sur purchase, and come under a 500m-share 3-year program with a term of three years. Grupo Security will also use local market debt – a CLP70bn bank credit and up to UF3m ($147m) in domestic bonds with tenors of 20-25 years, as part of the financing. Security acquired a portfolio of insurance, investment and brokerage businesses operating under the Cruz del Sur brand.
Voto Preps Cement IPO
Votorantim Cimentos has put the wheels in motion for an IPO, according to regulatory documents. The size and timing remain to be determined for the sale, which will include both primary and secondary shares. BTG Pactual, Credit Suisse, Itau, JPMorgan and Morgan Stanley are managing the sale, which will raise proceeds to spend on both organic and acquisition-based expansion. The cement unit of the Votorantim conglomerate booked BRL3.07bn ($1.55bn) in Ebita in 2012.
Smiles Launches IPO, Enlists PE Help
Gol’s Smiles mileage loyalty program has launched an IPO, aiming to raise more than BRL1bn ($503m), and has hooked private equity firm General Atlantic for a BRL400m commitment. With pricing scheduled for April 25, the Brazilian airline plans a sale of 44m of the unit’s primary shares at BRL20.70-BRL25.80 each, according to a prospectus, meaning a BRL1.03bn sale at the midpoint if a 15% greenshoe is included. A 20% hot issue option is also available. Smiles was due to begin meeting investors Monday, in what has been a tricky period for Gol, including credit ratings downgrades on expectations of harsh operating conditions. To shore up the sale and reassure potential investors, General Atlantic has agreed to buy BRL400m, Gol says. The agreement is contingent on a nine month lock-up, Smiles hitting the minimum of the price range and the base deal portion of the IPO reaching BRL800m, among other conditions. The proceeds from the IPO will go to funding the purchase of the passenger loyalty assets currently held by Gol’s VRG unit. Banco do Brasil, Bradesco, Credit Suisse, Deutsche Bank, Itau, Morgan Stanley and Santander are managing the sale. The business being carved out to become Smiles booked BRL125m ($63m) in Ebitda last year, after getting BRL164m in 2011 and BRL204m in 2010. Credit analysts and investors fret about Gol’s decreasing cash flows while it faces increasing fuel costs, currency depreciation, and rising competition. However, a successful equity raise would be seen as a positive liquidity event, according to credit ratings reports.
Vapores Seeks Additional Equity
Chile’s Compania Sud Americana de Vapores plans to raise $500m in additional equity capital, it says. The Grupo Luksic-controlled shipping company is looking for funds after agreeing 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. Shareholders will vote on the matter April 29. Vapores shares closed Thursday at CLP46.70 ($0.001)
CFR Looks for Capital
Chile’s CFR Pharmaceuticals plans to raise up to $191m in fresh equity, it says, through the sale of up to 725m shares. Shareholders will vote on the proposal April 26. CFR shares closed Thursday at CLP120 ($0.25).
Logistics Operator Eyes IPO
Ouro Verde, a Brazilian fleet outsourcing provider, is targeting the second half of the year for an IPO that could raise up to BRL1bn ($495m), according to a company spokeswoman. It is in the process of selecting banks, which could be finished by the end of this month. Ouro Verde is raising funds to repay debt and invest in its fleet. It also plans to reorganize the structure, putting the Martini Meat and Ritmo Logistica units under the holdco.
Plural Closes FoF FII
Brasil Plural has closed BRL200m ($99m) fund of funds investing in domestic real estate funds, according to regulatory documents. The Fundo de Investimento Imobiliario (FII) Brasil Plural Absoluto Fundo de Fundos will look to invest at least 90% in other FII funds and up to 10% in other real estate securities, such as Certificados de Recibiveis Imobiliarios (CRI) or Letras Hipotecarias (LH). Plural managed the placement itself.
BB Insurance IPO Aims above $4bn
Banco do Brasil is targeting a raise of more than BRL9.0bn ($4.5bn) through the carve-out IPO of its BB Seguridade insurance unit, and has scheduled pricing for April 23. The bank is selling 500m secondary shares at BRL15.00-BRL18.00 each, according to offering documents, indicating a BRL9.49bn deal at the midpoint if a 15% greenshoe is included. A 20% hot issue is also possible. All proceeds will go to Banco do Brasil. The state-controlled bank has consolidated its insurance businesses into the single BB Seguridade entity, to lower costs, increase scale and be better prepared for possible expansion and competition with the likes of Bradesco in a growing market. BB Seguridade controls Banco do Brasil’s two insurance joint ventures with Madrid-based Mapfre, and the bank plans to also expand into dental and health insurance brokerages. The to-be-listed company directly controls two holdcos, one responsible for insurance brokerage activities and the other for all other insurance operations. Banco do Brasil, BTG Pactual, Bradesco, Citi, Itau, and JPMorgan are global coordinators on the sale, with Brasil Plural and Banco Votorantim as joint bookrunners. The deal could end up being LatAm’s largest IPO since Santander Brasil raised $7.5bn in 2009.