Chile’s CorpBanca has priced the international portion of its equity follow-on, raising CLP75bn ($158m) and seeing 4x demand. The acquisitive bank priced the equivalent of 12bn common shares at CLP6.25 each, according to people familiar with the transaction. The level represents a 5.9% discount to Tuesday’s CLP6.64 closing price. More than half of the shares sold were in the form of ADS. About 72% of the buyers were US-based, with 14% of the sale going to Europe, 8% to Chile and the remainder to other geographies. The deal included 1.35bn secondary shares sold by vice chairman Fernando Aguad. Tuesday’s international offer is to be followed by a Chilean rights offering at the same price, open today through February 15. The total shares sold should reach 47bn, raising some $660m. The controlling Saieh Group has waived its preemptive rights. Proceeds are to be used to help fund the $1.28bn purchase of Colombia’s Helm Bank announced in October. BTG Pactual managed the sale, with Celfin and CorpBanca as co-managers. At the time of the Helm announcement, the IFC agreed to buy 5% of the bank, a stake to be included in the upcoming rights offering and estimated at the time to be $225m. CorpBanca introduced itself to the international bond markets earlier this month, with an $800m 3.125% 2018 bond that came at a 3.240% yield.
Category: Equity
Logistics Operator Pulls IPO Plug
Brazil’s Vix Logistica has cancelled its IPO authorization, it says, confirming the market’s expectations after attempts to launch the sale in June and again at the end of last year did not move ahead. The transportation and fleet rental specialist cites “unfavorable” market conditions, and notes it will monitor them for a future attempt. It had planned to sell primary shares, as well as secondary shares owned by the controlling Aguia Branca group, in a deal that was expected to raise less than BRL500m ($245m). It was seeking capital mostly for organic growth, and also to acquire real estate and for working capital. Banco do Brasil, Bradesco, BTG Pactual, Credit Suisse and Itau were managing the sale.
CorpBanca Set for Follow-on
Chile’s CorpBanca is set price a follow-on in New York today, representing the international portion of a process expected to eventually top $600m-equivalent. The acquisitive Chilean bank is offering 12bn common shares internationally, represented by 8m ADS, which would raise $168m based on Monday’s $21.05 ADS closing price. The shares in the cross-border sale include 1.35bn secondary common shares to be sold by vice chairman Fernando Aguad. The international offer is to be followed by a Chilean rights offering that could bring the shares sold to the 47bn share limit, raising $660m in total. The controlling Saieh Group has waived its preemptive rights. Proceeds are to be used to help fund the $1.28bn purchase of Helm Bank in Colombia announced in October. BTG Pactual is managing the sale, with Celfin and CorpBanca as co-managers. At the time of the Helm announcement, the IFC agreed to buy 5% of the bank, a stake to be included in the upcoming rights offering and estimated at the time to be $225m.
Fibra Uno Aims to Top $1bn
Fibra Uno has launched an equity follow-on, aiming to price January 29 and raise more than $1bn. In its third trip to the markets, the Mexican real estate fund is offering 511m shares, including an overallotment option, according to regulatory documents. This would suggest a MXP18.68bn ($1.48bn) deal at Monday’s MXP36.55 closing price. Fibra Uno is looking for additional funds to grow its property portfolio. Credit Suisse and Santander are global coordinators, joined by bookrunners BBVA and Evercore. The first-ever real estate fund created under Mexico’s growing Fibra asset class raised $300m-equivalent in a 2011 IPO and added $700m in a follow-on last year.
US PE Shop Plans CCD
Acon Investments is preparing to raise private equity funds from Mexico’s pension funds through a certificado de capital de desarrollo (CCD) transaction. Currently raising $300m-$500m for its Acon Latin American opportunities Fund IV, the CCD would have a life of 10 years, extendible to 12, according to regulatory documents. The exact size to be raised from the CCD remains to be determined. Acon will target equity investments in Mexican companies. It expects to pay investors their principal plus an 8% preferred return, followed by the 80%-20% investor-manager split typical in private equity. ING is managing the process, for which the timing is unclear. Founded in 1996, Acon had $966m under management in LatAm through 3Q 2012. About 36% of its LatAm activity is in Mexico, the largest represented country in the region, followed by Brazil with 30%. The US-based global shop has offices in Mexico City and Sao Paulo. Last year, it made a BRL110m ($53m) investment in Brazil’s BSM Engenharia, a service provider to the country’s oil and infrastructure sectors, equal to about 40% of the company.
BTG Holders Sell Down
Shareholders in BTG Pactual have raised BRL210m ($103m) in a public auction, according to a source familiar with the matter. The 6.5m units, equal to 5.4% of the bank’s free float, priced at BRL32.36 each, above a BRL29.50 minimum and at a 2.7% premium to the previous day’s close. The shares closed at BRL32.65 Friday. The sellers were identified only as holders outside the controlling group. BTG managed the transaction.
Slim Joins in as Mexico ECM Deals Advance
Carols Slim plans to list the Grupo Sanborns retail unit and raise as much as $1bn, joining a growing list of Mexican ECM transactions, with Pepsi bottler Cultiba and real estate fund Fibra Uno likely to launch as soon as the middle of this week. Cultiba, formerly Grupo Embotelladoras Unidas, initiated investor pre-education last week and is expected to launch as soon as the middle of the week if conditions still appear favorable, according to people following the process. Though registered as a follow-on, Cultiba is setting a price range for the deal, being billed as a “re-IPO.” The issuer should raise about $500m-equivalent, via Bank of America Merrill Lynch, Banorte-Ixe, BBVA Bancomer, Credit Suisse, Inbursa and JPMorgan. Fibra Uno is also expected to launch its second follow-on this week, with Credit Suisse, Evercore and Santander managing. The real estate fund has raised $1bn-equivalent in its first two transactions. Meanwhile Grupo Carso has filed to carve out its retail assets into Grupo Sanborns, according to regulatory documents, in a deal likely targeting $700m-$1bn, according to ECM bankers. It is too early for the timing to be indicated. The company will include the iconic Sanborns stores, as well as other brands including Sears and Sacks Fifth Avenue, located almost entirely in Mexico, with locations also in El Salvador and Panama. The units turned in $244m in Ebitda during the first nine months of 2012, after $413m in all of 2011. Inbursa and Credit Suisse are global coordinators, with Citi, Morgan Stanley and Santander as bookrunners. With Brazilians also preparing deals, 2013 seems to be looking up for the ECM markets. “We could book more revenue in the first quarter than in all of 2012,” quips an ECM banker with deals in the pipeline. CorpBanca is to be first out of the gate, with a $150m SEC follow-on scheduled for Tuesday.
BTG Holders Prep Block Sale
Shareholders in BTG Pactual are scheduled to sell a block of shares today worth BRL193m ($95m), according to the BM&FBovespa. The sellers, identified only as holders outside the controlling group, are offering 6.5m units, or 5.4%, at BRL29.50 each. The price represents a 6.3% discount to Thursday’s BRL31.50 close. The shares had dropped 4.26% in Thursday’s session. BTG is managing the transaction.
QGOG Restarts Equity Plans
After putting off IPO plans last year, Brazil’s Queiroz Galvao Oleo e Gas (QGOG) is hoping equity investor appetite is more favorable to Brazilians and to oil sector issuers in 2013. The QGOG Constellation unit has moved forward with a US IPO filing, setting a rough target of $500m. The exact size and timing of the SEC-registered deal remain to be determined, though a filing this week would put the issuer on course for a deal by mid-February if it wishes to issue under 3Q 2012 financials. The plan is for the sale of primary shares, raising funds for the oil services provider’s capex. QGOG is in need of funds to make down payments for two ultra-deepwater drillships, and raise capital for new and existing projects. JPMorgan, Bank of America Merrill Lynch, and Itau, who were hired at the time of a private SEC filing last year, are global coordinators, along with Credit Suisse and Bradesco as joint bookrunners. QGOG Constellation is 80% controlled by QGOG International Sarl, a vehicle owned by members of the Queiroz Galvao family. The unit operates or is building 11 drillships in Brazil’s offshore drilling space, and booked $325.6m in Ebitda through the first nine months of 2012, after booking $211.4 for all of 2011. QGOG Constellation’s Luxembourg registration and a US listing are expected to help it attract global energy investors as well as the LatAm and EM-focused buysides that have been finicky in the last two years. Brazil has not seen an oil sector issuer since QGOG’s sister unit Queiroz Galvao Exploracao e Producao made its public equity debut in February 2011, raising just over $900m-equivalent. Seabras Servicos de Petroleo was another looking in 2012 that shied away. If it prices in the January-February window, QGOG Constellation is likely to be the second SEC-registered deal from the region this year, after CorpBanca, which is expected to price January 15.
Cultiba Heard Reaching out to Buyside
Mexico’s Cultiba aims to start investor pre-education discussions this week for an equity follow-on, according to sources familiar with the process, though the timing for the launch and formal road show remains to be set. The transaction, essentially a re-IPO given the illiquidity of the Mexican Pepsi bottler’s shares, is expected to raise $300m-$500m. The company formerly known as Grupo Embotelladoras Unidas plans to set a price range and is offering primary and secondary shares in Mexican and global tranches, according to regulatory documents. The issuer would need to raise at least $250m-equivalent to repay the bank loans it plans to take out with the proceeds, and also targets additional capital for investments. The bottler has a $125m loan due 2022 with Rabobank, costing it Libor+225bp, and an MXP1.61bn ($126m) 2022 loan with Banorte at TIIE+160bp. Bank of America Merrill Lynch, Banorte-Ixe, BBVA Bancomer, Credit Suisse, Inbursa and JPMorgan are managing.