Cemex is scheduled to price the IPO of its Cemex LatAm unit tonight, targeting more than COP1.50trn ($820m). The Colombian-listed carve-out of the Mexican Cement maker’s assets in Colombia, Panama, Costa Rica, Brazil, Guatemala, Nicaragua and El Salvador is offering 126m shares, including a 15% greenshoe, at COP11,000-13,500 each. This would indicate a COP1.54trn transaction at the midpoint. The setting of a price range – as opposed to a single fixed price given at the opening of the order period – is a new twist for a Colombian sale, as is the plan to divide the shares into local and 144a tranches at the time of pricing rather than in advance. Cemex LatAm posted $466m in Ebitda in the first nine months of 2012, up from $362m in the corresponding period in 2011. Bank of America Merrill Lynch, BBVA, Citi and Santander are managing the sale. The deal comes as part of a plan to sell assets to meet debt maturity payments. Cemex in September got creditors to extend to 2017-2018 more than $7.2bn in debt that had been due in 2014, and followed up with a $1.5bn bond sale last month.
Category: Equity
CS Closes Debt CCD
Credit Suisse has raised MXP5.49bn ($419m) for a certificado de capital de desarrollo (CCD) fund investing in Mexican credit assets, according to regulatory documents. The 2020 transaction creates a fund, known as the Credit Suisse Mexico Credit Opportunities Trust, which will invest in bonds, loans, structured credit products and other debt assets. It is to be managed by Andres Borrego and Manuel Ramos. The bank envisions a return structure with a 9% preferred return for investors, followed by an 85%-15% split between investors and the manager. Credit Suisse’s own capital markets operation managed the sale.
Aliansce Targets BRL500m FO
Brazil’s Aliansce is targeting a BRL500m ($246m) for a follow-on equity offering in December, according to regulatory documents. The shopping center operator is looking for funds to acquire, develop and expand malls. It expects to begin roadshowing the all-primary share offer December 3, ahead of a December 12 pricing. Bradesco, BTG Pactual, Credit Suisse and Itau are managing the sale.
Drugstore Pulls IPO
Pague Menos has officially cancelled its IPO plans, it says, following a failure to launch a deal last month as the Brazilian drugstore operator intended. It had been targeting a BRL500m ($246m) sale in order to raise funds for expansion. Banco do Brasil, Credit Suisse, Itau and Santander had the mandate. Pague Menos and car retailer AutoBrasil had each hoped to price IPOs in the September-October windows, and now Brazil’s IPO prospects look bleak for the remainder of the year. The market appears to be open for follow-on offerings before the end of the year, though, with meatpackers Minerva and Marfrig and shopping mall operator Aliansce planning deals.
CS Closes in on Debt CCD
Credit Suisse was expected to close books by today on a certificado de capital de desarrollo (CCD) transaction of up to MXP6bn ($459m) in Mexico’s local market, according to regulatory documents. The 2020 transaction would create a fund investing in various types of credit transactions in Mexico. The bank envisions a return structure with a 9% preferred return for investors, followed by an 85%-15% split between investors and the manager. Credit Suisse’s own capital markets operation is managing the sale.
Alsea Plans FO
Mexican food and beverage franchise operator Alsea is preparing to raise fresh equity capital in a follow-on offering, according to regulatory documents. The size and timing for the all-primary share sale have not been set. The issuer plans a local and international tranche, and plans to use proceeds to repay debt to improve its capital structure as it continues to expand. Banamex and Santander are managing. 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. Alsea shares closed at MXP20.23 Monday. It held an IPO in 1999.
Brookfield Ties Up Capital Raise
Brazil’s Brookfield Incorporacoes has raised BRL389m ($192m) through an equity rights offering, it says. The developer sold 127m shares at BRL3.06 per share in the offer closed last week. Shares closed at BRL3.51 Monday. The result represents nearly all of a BRL400m target.
CEDAE Plans Share Sale
Companhia Estadual de Aguas e Esgotos (Cedae) is preparing an IPO, according to regulatory documents. The Rio de Janeiro state water utility does not indicate the timing or the number of shares to be sold. The offer will include primary shares as well as secondary shares sold by the government. Proceeds are to be used to fund expansion and maintenance projects. Bank of America Merrill Lynch, Bradesco, BTG Pactual and Itau have been hired to manage. Cedae booked BRL842m ($417m) in Ebitda in 2011, down from BRL880m in 2010.
RE Group Aims for Hotel Fibra
Mexico’s Grupo GDI is preparing a Fibra transaction that will create a fund holding hotel assets, according to regulatory documents. There were no size or timing details immediately available for the RIET-like transaction. The fund would include 30 operating Mexican hotels and four in development, including the Fiesta Inn, One and Camino Real brands. Proceeds would be used for acquiring and developing additional properties. BBVA and JPMorgan are global coordinators, with Evercore and Banorte-Ixe joining on the local portion. GDI specializes in hotels, malls and residential property development.
Aliansce Mulls Follow-on
Brazilian shopping mall operator Aliansce plans to sell shares in a primary offering before the end of the year, the company said in a filing on Wednesday. It does not give any additional details regarding timing or size. It raised BRL673m ($370m) in a 2010 IPO.