Macquarie’s Mexican real estate operation has priced a MXP14.95bn ($1.17bn) Fibra transaction, the region’s largest-ever real estate IPO. Though it comes in at the bottom of the price range, comfortably oversubscribed books offer continued demonstration of investors using real estate exposure to play Mexico’s expected growth story. The Macquarie Mexican REIT, as it is being called in marketing, priced 598m shares, including a 15% greenshoe, at MXP25.00 each, versus a MXP25.00-MXP29.00 range. The book went 70% to international investors, seen as key to getting the total size, according to people following the deal. A handful of US REIT-focused investors were among the US institutions participating. Buyers also included several Mexican Afores and accounts in Brazil and Chile. Macquarie is placing real estate assets into a fund to be capitalized through the REIT-like transaction, and use proceeds to acquire additional properties. The 245 properties in 21 cities in 15 states are to come from CPA Corporate Properties and GE Capital, and are mostly for manufacturing-related use. Macquarie plans to buy and hold 5% of the Fibra certificates. Bank of America Merrill Lynch, BBVA, BTG Pactual, JPMorgan, Macquarie and Morgan Stanley managed the transaction, the fourth-largest IPO by a Mexican issuer, according to Dealogic data. Bankers expect a couple more Fibra transactions next year, as the deals are not easy to put together even though investors want them. Still in the pipeline is a hotel-based Fibra from Hoteles Prisma. Macquarie is the final ECM deal from Mexico scheduled on the 2012 calendar. Issuers are hopeful that momentum from what has been the Mexican market’s best year in recent memory can carry into 2013. So far, a follow-on from Pepsi bottler Cultiba is in the works targeting $500m-equivalent.
Category: Equity
Aliansce Shares See Strong Bid
Brazil’s Aliansce has priced a BRL448m ($216m) equity follow-on, coming at a 2.5% discount. What should be the last marketed Brazilian equity deal of 2012 was heard more than 4x subscribed, putting a positive, if small, ending note on a disappointing year for Brazilian issuers. The shopping center operator sold 19.3m primary shares, including a 15% greenshoe, at BRL23.25 each, according to the CVM. The level compares to Wednesday’s BRL23.85 closing price. The deal was aided by the stock trading up 1.4% in Wednesday’s session. About 60% of the deal was expected to go to Brazilian buyers, according to people familiar with the sale. Aliansce is raising funds to acquire, develop and expand shopping malls, and had set itself a BRL500m target when announcing the transaction in October. “Aliansce’s expansion process has been going well and been delivering positive results. There is still space for the consolidation in the sector, as well as for new projects,” Mauricio Kojo, analyst at UM Investimentos in Sao Paulo, tells LatinFinance. As the issuer has been making prudent investments with its funds, his shop sees the additional equity capital as a positive move. Bradesco, BTG Pactual, Credit Suisse and Itau managed the sale. Brazilian issuers have placed $8.67bn-equivalent through 27 deals this year, according to Dealogic data, compared to a full-year total of $14.63bn from 33 in 2011. Issuance from the country represents 35% of the regional total to date this year, down from 42% last year. Bankers are optimistic that volume can rebound next year, and are counting on investors looking at Brazil with a fresh eye after valuations have largely come down. “Only the banks that are well-positioned across the region have made money this year. ECM was clearly slower in Brazil, but there was also a lot more diversity. While we expect other countries to continue issuing, Brazil is going to have a higher stake next year relative to this year,” says a Sao Paulo-based ECM banker. So fa
Macquarie Aims Fibra
Macquarie’s Mexican real estate operation is scheduled to price an IPO for its Fibra fund today, targeting more than $1bn. The sale was heard with covered books as of Wednesday afternoon. The transaction would raise MXP16.13bn ($1.27bn) if the 598m shares, including a 15% greenshoe, price at the midpoint of a MXP25.00-MXP29.00 range. The managers are aiming for 60% to be sold in an international tranche. Macquarie is planning to put real estate assets into a fund to be capitalized through the REIT-like transaction, and use proceeds to acquire additional properties. The 245 properties in 21 cities in 15 states are to come from CPA Corporate Properties and GE Capital, and are mostly manufacturing-related. Macquarie plans to buy and hold 5% of the Fibra certificates. Bank of America Merrill Lynch, BBVA, BTG Pactual, JPMorgan, Macquarie and Morgan Stanley are managing the transaction, to be the largest in a series of recent deals being done or prepared in the asset class.
Mall Operator to Close out Brazil Equity Year
Brazil’s Aliansce is scheduled to offer 16.7m primary shares today in equity follow-on. The deal would raise BRL452m ($217m) if it came at Tuesday’s BRL23.53 close and a 15% greenshoe is used. A 20% hot issue is also available. The shopping center operator had originally indicated a BRL500m target. Aliansce is looking for funds to acquire, develop and expand shopping malls. Bradesco, BTG Pactual, Credit Suisse and Itau are managing the sale. It should be the final marketed Brazilian equity transaction this year. Elsewhere in the region, Macquarie Mexico follows Thursday with a Fibra IPO and Colombia’s Conconcreto is pricing a follow-on next week.
Gavea Preps RE Fund of Funds
Brazil’s Gavea Investimentos is preparing a BRL200m ($96m) fund of funds investing in other real estate funds and securities, according to a regulatory filing. The Gavea Fundo de Fundos de Investimento Imobiliario plans to invest in other fundo de investimento imobiliario (FII) transactions, as well as in certificados de recebiveis imobiliarios (CRI), letras hipotecarias and letras de credito imobiliario. The transaction can be upsized by up to 20%, and requires a minimum BRL50m participation. Gavea’s own distributor will manage the sale, with Bradesco as administrator. It expects to begin meeting investors in January.
Domestic Buyers Fuel Equatorial Sale
Brazil’s Equatorial Energia has priced a BRL1.42bn ($683m) equity follow-on, exercising its full overallotment in a deal heard multiple times oversubscribed. The transaction relied on local investor support and came at a 4.8% discount to the previous session’s closing price, with shares trading up 4.23% Friday. The energy holdco sold 89m shares, including a 15% greenshoe and 20% hot issue, at BRL16.00 each, according to the CVM. The hot issue consisted of secondary shares owned by controller Vinci Partners. More than 50% of the proceeds were said to go to Brazil-based buyers, with investors drawn to high dividend payments. About 70% of the proceeds are marked for capitalizing Centrais Eletricas do Para (Celpa), of which Equatorial bought control in September, with the remainder for acquisitions and working capital. Bradesco, BTG Pactual, Goldman Sachs and Itau managed the transaction. Equatorial agreed to buy 61.37% of heavily-indebted Celpa from Grupo Rede for BRL1.00, and is considering teaming up with CPFL Energia to buy all of Rede.
Endesa Tweaks Enersis Follow-on
Spain’s Endesa has set new terms for the controversial equity follow-on it has been preparing for its Enersis unit, resulting in a new CLP2.84trn ($5.96bn) valuation size that pleases Chile’s pensions. The electricity holdco plans to offer 16.44bn shares at CLP173.00 per share, it says. Shares closed at CLP167.26 Friday. The new total is at the low end of the $5.92bn-$6.56bn range Endesa had put out after scaling back from an original $8.02bn. The reduction comes after minority holders, namely the pension funds, objected to the valuation of assets Endesa plans to contribute to Enersis to subscribe its share of the capital increase. Regulators also flagged a conflict of interest. In addition to simplifying Enersis’ complicated structure, Endesa is looking to reduce the gap between its Ebitda and net income, as well as reduce dividend leakage within the Enersis group. The operation could also increase the liquidity of Enersis shares, and give it more cash to continue making acquisitions and developing projects in the region. Shareholders will vote on the new plan December 20. The sale must take place within six months of approval.
Brazilian Software Specialist Preps IPO
Linx, a Brazilian provider of software to the retail sector, is preparing to go public, according to regulatory documents. The IPO is to include primary shares as well as secondary shares sold by a private equity fund linked to Itau. The size and timing remain to be determined. Linx booked BRL56m ($27m) in Ebitda in 2011, up from BRL40m in 2010. It is seeking to raise funds for acquisitions and for working capital. BTG Pactual, Credit Suisse, Itau and Morgan Stanley have been hired to manage the sale. Linx offers both cloud-based and on-premises products for Brazilian retailers. It has been operating for 27 years and claims 29% of the market share. Other Brazilian IPOs in the pipeline include water utility Cedae, Vix Logistica and AutoBrasil, with all appearing to be waiting for January at the soonest.
CMPC to Visit ECM, DCM
Empresas CMPC plans to sell bonds and raise equity capital in 2013, it says. The need comes after the Chilean pulp and paper company received final board approval to start the $2.1bn expansion of its Guaiba plant in Brazil. It expects to raise $500m in equity capital in the first half of 2013, followed by another $250m at a later point, and will seek shareholders’ approval January 24. It will also look to sell $500m in bonds in the international or local markets. Also, it expects a $1.2bn 10-year loan from BNDES and will look to shed some non-core assets, such as a 7.7% it holds in financial services firm Bicecorp.
Equatorial Due to Price Share Sale
Brazil’s Equatorial Energia was expected to emerge with a price for its equity follow-on by this morning, targeting a transaction of more than $600m. Books were heard to be more than covered Thursday. The energy holdco is offering 66m primary shares. This would indicate a BRL1.28bn ($604m) deal, assuming a 15% greenshoe is used, based on Thursday’s BRL16.80 closing price. A 20% hot issue, comprised of secondary shares owned by controller Vinci Partners, is also possible. About 70% of the proceeds are marked for capitalizing Centrais Eletricas do Para (Celpa), of which Equatorial bought control in September, with the remainder for acquisitions and working capital. The sale should take Equatorial’s free float to 52.6%, up from 24.2%. Bradesco, BTG Pactual, Goldman Sachs and Itau are managing the transaction. Equatorial agreed to buy 61.37% of heavily-indebted Celpa from Grupo Rede for BRL1.00, and is considering teaming up with CPFL Energia to buy all of Rede.