Mexico’s Alsea has priced an equity follow-on expected to raise MXP1.25bn ($96m). The food and beverage franchise operator arrived at a MXP21.50 price, according to people familiar with the sale, and was set to offer 58m shares, assuming a 15% greenshoe is used. The level represents a 1.7% discount to Thursday’s MXP21.88 closing price. The issuer plans to use proceeds to repay debt to improve its capital structure as it continues to expand. Banamex and Santander managed. Alsea is known as the operator for brands such as Starbucks, Dominos Pizza and Burger King in Mexico and in other markets. Company officials recently announced a $110m plan to expand the Starbucks brand in Mexico and Argentina.
Category: Equity
Posted inDaily Brief
Argos Issues Convertibles
Colombia’s Grupo Argos has issued COP750bn ($413m) in 3-year convertible bonds in the domestic market. The Colombian conglomerate upsized the sale by COP250bn, after getting COP759bn in demand. The bonds have a 5% coupon and are convertible into preferred shares at
the holder’s discretion during the life of the bond, and mandatorily at maturity. Bancolombia led the deal, rated AA+ on a national scale, with Bolsa y Renta, Corredores Asociados, Correval and Serfinco as bookrunners.
Posted inDaily Brief
BTG RE Fund Sets Price
BTG Pactual has priced the reopening of its corporate real estate fund, and has raised the first BRL683m ($325m) of what could be a BRL2bn operation. The Fundo de Investimento Imobiliario (FII) BTG Pactual Corporate Office Fund set a BRL154.00 price, and has sold 4.4m secondary quotas, as the shares are known. The fund may complete within the next two months the sale of an additional 2.5m secondary quotas, which would then be followed by the sale of up to 6.2m primary
quotas, bringing the amount raised in the follow-on to as much as BRL2.0bn. The price level matches a minimum set in the offering documents and compares to Thursday’s BRL153.40 closing price. Unlike the initial sale, the fund marketed the reopening to international investors, billing it as the first international Brazilian REIT-like offering. The shares sold Wednesday went to Brazilians as well as US and European investors. BTG, Bank of America Merrill Lynch, Bradesco, Credit Suisse and Santander are managing the transaction. The fund
initially raised BRL700m in 2007 and has 12 properties located in Sao Paulo, Rio de Janeiro and Campinas totaling BRL1.2bn market value, according to a prospectus. In Mexico, the market was awaiting the
pricing late Thursday of the MXP4bn IPO of Grupo GDI’s hotel property-focused Fibra transaction. Next week will bring a BRL1.1bn follow-on from Brazilian Marfrig on Tuesday, and a $300m-equivalent follow-on from Chile’s Sonda, closing books Tuesday and pricing Wednesday morning.
Posted inDaily Brief
Minerva Raises FO Equity
Minerva has priced a BRL557m ($267m) equity follow-on, bringing the first marketed Brazilian equity deal since July at a 4.3% discount. The meatpacker priced 43m primary shares and 7.5m secondary shares, including a 15% greenshoe and 20% hot issue, at BRL11.00 each, according to the CVM. The price compares to Wednesday’s BRL11.50 closing level. The secondary shares were entirely part of the hot issue and sold by controller VDQ holdings. About 65% of the proceeds will be used for debt, and the remainder for acquisitions in the beef space in South America. BTG Pactual, Credit Suisse, HSBC and Morgan Stanley managed the sale, the first of several scheduled this week through December 12, the final period for getting equity deals out the door this year. Three more transactions are scheduled to price today. BTG Pactual is reopening its corporate real estate fund, this time to international investors as well as domestic buyers, in a bid to raise BRL2bn. Mexico’s Alsea is expected to raise MXP1.23bn ($95m). Grupo GDI is offering a MXP4bn Fibra, in the second-ever Fibra done since the creation of the asset class and the first to focus on hotel properties.
Posted inDaily Brief
Brazilians Set for Larger Role in Final ECM Push
Overshadowed for much of 2012, Brazilian equity issuers are set to feature heavily in what should be a busy three weeks for regional ECM, beginning with meatpacker Minerva today. LatAm issuers are scheduled to raise more than $4.44bn through nine transactions through December 12, with Brazilians accounting for more than 55% and perhaps offering a clue to the likelihood of a Brazilian ECM rebound in 2013. Bankers stress that high quality issuers are the key to reviving the equity markets. “Brazil versus ex-Brazil is a misconception. The investors have changed, and are not willing to pay anymore for growth stories with lack of liquidity, and execution risk. The market in general is saying it doesn’t want those types of companies, from any country,” says a New York-based ECM head involved in some of the upcoming sales. “We expect EPS growth to be pretty substantial in Brazil next year, about 30%-40%, versus the drop we had this year. There is no reason why we can’t return to double or triple the amount of Brazilian issuance going forward,” says a Sao Paulo-based ECM banker. He adds that less government interference in industries – such as the electric utility tariff changes that have recently hurt the market cap of several large issuers – would also help restore investor confidence. Meatpacker Minerva is scheduled to raise about BRL498m ($240m), based on Monday’s share price and including a 15% greenshoe. The follow-on, through BTG Pactual, Credit Suisse, HSBC and Morgan Stanley, is being done to raise funds to pay down debt and for acquisitions. Thursday sees BTG raise BRL2.0bn from the reopening of its corporate office real estate fund, with fellow meatpacker Marfrig (BRL1.23bn) and power holdco Equatorial Energia (BRL1.32bn) next week and mall operator Aliansce (BRL425m) finishing up December 12. Mexicans are also in the pipeline, with Alsea poised to raise MXP1.23bn ($95m) in a follow-on and Grupo GDI looking for a MXP4bn IPO of the first hotel-focused Fibra. The m
Posted inDaily Brief
Corfi Increases Promigas Stake
Colombian investment bank Corficolombiana has purchased an additional 18.7% stake in natural gas distributor and transporter Promigas through a public tender, it says, spending COP634.95bn ($348m). Corficolombiana bought 24.9m shares at COP25,500 each in the offer closed last week, close to reaching a 20% target. The bank now holds 34.1% directly, and an additional 10.6% through its position in CFC Gas Holding, making it the largest Promigas holder.
Posted inDaily Brief
AMX Moves Toward Telmex Delisting
America Movil has spent MXP615m ($48m) on an additional 0.33% of Telmex following a tender, it says, bringing it to a 97.54% position in its quest to delist the entity. The telecom, acquiring its former parent in the transition to its new role as a holding vehicle for all of Carlos Slim’s telecom operations, has repurchased 60.1m shares at MXP10.225 each. America Movil expects to receive authorization for the delisting of Temex “in the coming days.”
Posted inDaily Brief
Argos Lays Foundation for Convert Sale
Colombia’s Grupo Argos is expected to issue COP500bn ($274m) in convertible bonds in a process starting today and expected to price Wednesday, say sources familiar with the Colombian conglomerate’s plans. The sale may be upsized to COP750bn. The 3-year bond comes with a 5.0% coupon and is convertible into preferred shares at the holder’s discretion during the life of the bond, and mandatorily at maturity. Bancolombia is leading the deal, rated AA+ on a national scale, with Bolsa y Renta, Corredores Asociados, Correval and Serfinco as bookrunners. In a research report, Bolsa y Renta highlights the papers as a medium-term play for investors that is ideally held to maturity.
Posted inDaily Brief
Banco de Chile Sets FO Price
Banco de Chile is targeting CLP252.2bn ($524m) through an equity capital raise, with a rights offering to existing holders scheduled to begin December 5. The bank has set the price for the 3.94bn shares at CLP64 each. Shares closed at CLP70.69 Monday. Some 2.66bn shares will be available during the subscription period for existing holders, which runs through January 3. The bank, controlled by the Luksic family and Citi, is raising funds for expansion.
Posted inDaily Brief
BB Looks to Spin off Insurance Arm
Banco do Brasil is planning to put its insurance operations into a new company that may IPO next year, it says. The state-controlled bank is seeking to consolidate its insurance businesses into a single company, BB Seguridade, to lower costs, increase scale and be better prepared for possible expansion. BB Seguridade would control 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 listed company would directly control two holdcos, one responsible for insurance brokerage activities and the other for all other insurance operations. It does not give any additional details about the possible IPO, other than that the sale would include both primary and secondary shares. Banco do Brasil is Brazil’s largest bank, and its insurance operation number two behind Bradesco’s.