Hospitality Equity Partners is preparing a certificado de capital de desarrollo (CCD) transaction for Mexico’s domestic market, according to regulatory filings. The 10-year deal of a to be determined size will create a fund investing in tourism real estate assets, both operational and in development, throughout Mexico. The return structure is similar to other CCDs, with investors receiving their initial investment plus a 10% preferred return, with further profits divided 80% to the investors and 20% to the managers. Santander is managing the transaction. Hospitality Equity Partners is an entity formed by Mexican real estate investment shop Real Capital Investment Management and Mexican Tourism advisory specialist Leisure Partners. The timing of the transaction is unclear.
Category: Equity
La Polar Hits Target
Chile’s La Polar has raised CLP127bn ($269m) through an equity offering closed last week, it says, topping a CLP120bn goal. The retailer has sold 720m shares, with pricing set as the average price of the three days prior to the buyer’s subscription minus a 5% discount. The shares closed at CLP208.33 Friday. The offer raises funds to remodel stores in Chile and to expand in Colombia, and is done as part of a $900m restructuring agreement with creditors. The retailer set aside nearly $1bn-equivalent in loan loss provisions last year amid accusations of fraud after the company arbitrarily overcharged its credit clients. Celfin is managing the capital raise, and Lazard is the advisor on the restructuring.
Sonda Advances Follow-on
Chile’s Sonda is preparing a roadshow for an equity follow-on, according to sources familiar with the process. The information technology firm, which was approved for a CLP150bn ($317m) equity capital raise in August, is hoping to execute by the end of the year. It plans to first visit investors in LatAm, North America and Europe, in a process managed by BTG Pactual and Goldman Sachs. The proceeds will help fund a $700m 2013-2015 expansion plan. About $200m of the plan is to be organic, and $500m should come through acquisitions. It is targeting growth outside Chile, specifically in Brazil Mexico and Colombia. The company would use equity to fund about 40% of the plan, with 40% coming from cash and the remainder from debt. Sonda has been a consistent acquirer in the region, most recently taking Brazil’s Euclid for $73m in May and Chilean rival Quintec last year for $61m. It has a presence in Chile, Brazil, Argentina, Colombia, Costa Rica, Ecuador, Mexico and Uruguay. Sonda shares closed at CLP1,463.70 Friday.
Duratex Launches Tablemac Tender
Brazil’s Duratex has launched an offer to buy up to 12% of the publicly traded shares of Colombia’s Tablemac, it says. As part of its plan to eventually obtain as much as 52% of the industrial wood panels specialist, it will look to spend as much as COP48.72bn ($27m) to buy up to 4.06bn shares at COP12.00 each, it says. The offer will take place October 17-30, with allocations November 1. In May Duratex agreed to buy 25% of the Tablemac for $56m, at the same price. Under the agreement in May, Duratex can, within the next 2 years, opt to buy another 15% at the same per-share price adjusted by an annual rate of 6.25%.
Mexichem Clinches Well-bid Equity Sale
Mexichem has priced a MXP15.6bn ($1.21bn) follow-on equity offering, coming at a 2.9% discount and drawing 4x demand. The industrial conglomerate priced 260m shares, assuming a 15% greenshoe is used, at MXP60.00 each, according to sources familiar with the sale. The level compares to Tuesday’s MXP61.82 closing price. About 60% of the tranche was expected to be allocated to international investors, and 40% to Mexican-based buyers. The strong international bid suggests investors are still keen to get their hands on Mexican assets, even as they become more sensitive to high valuations in the country. Including the greenshoe, the all-primary deal represents 12.4% of the company’s shares. Mexichem is raising funds for general corporate purposes, including expansion projects and working capital. Citi, HSBC, JPMorgan and Morgan Stanley managed the international portion of the transaction, joined by BBVA on the Mexican portion. The sale follows a $1.15bn international bond sale last month drawing 17x demand, as Mexichem continues to raise funds following the $500m acquisition of Dutch pipe maker Wavin. The deal is Mexico’s largest follow-on since Cemex’s $1.87bn sale in 2009, according to Dealogic data. Credito Real is set to finish what should be the most active four weeks of Mexican equity issuance in recent memory, with an IPO expected to raise $200m-equivalent scheduled for October 16.
Mexichem Set for FO
Mexichem is scheduled to price today an equity offering of more than $1bn, becoming the latest Mexican issuer to take advantage of investor appetite for the country. The industrial conglomerate is offering 260m shares, assuming a 15% greenshoe is used, in an all-primary share sale that would raise MXP15.74bn ($1.23bn) at Monday’s MXP60.53 closing price. Mexichem is raising funds for general corporate purposes, including expansion projects and working capital. Citi, HSBC, JPMorgan and Morgan Stanley are managing the international portion of the transaction, joined by BBVA on the Mexican portion. The sale follows a $1.15bn well-demanded international bond sale last month, as Mexichem continues to raise funds following the $500m acquisition of Dutch pipemaker Wavin.
IFC Takes Corpbanca Stake
The IFC continues its investments in expanding LatAm financial groups, agreeing to spend $225m on an about 5% stake in Chile’s Corpbanca, according to a spokeswoman. The IFC expects to complete the buy by the end of the year or early 2013. The investment should help Corpbanca grow in Latin America, particularly in its service to small and medium enterprises, it says. Mexico, Peru and Brazil are among the countries of interest to Corpbanca in terms of expanding its reach. The IFC has made other equity investments in LatAm financial groups with cross-border expansion plans. It took a $200m position in Colombia’s Suramericana last year to aid with the groups purchase of ING pension assets, and also has a position in Davivienda. CorpBanca bought the Santander unit in Colombia for $1.16bn earlier this year.
Pinfra Parks Equity Sale at Discount
Mexico’s Promotora y Operadora de Infraestructura (Pinfra) has priced a MXP4.43bn ($349m) equity follow-on, coming at an 8.5% discount. The Mexican concession operator priced 70.4m shares, including the assumption of a 15% greenshoe, at MXP63.00 each, it says, versus Thursday’s MXP68.85 closing price. The shares closed down 2.21% at MXP67.33 Friday, on a day when the Bolsa gained 1.24%. Pinfra’s order book was 2x covered, according to bankers on the sale, with the main investor groups including LatAm-dedicated investors, global infrastructure investors and Mexico’s pension funds. About 51% of the sale went to international buyers, according to regulatory documents, up from the 42% expected pre-sale. About 70% of the shares sold in the deal were secondary shares held by members of the Penaloza family and various investment funds. The public float was to increase to 46.1% from 29.5%, with controlling shareholders ending up with a 44.5% stake and funds linked to Grupo Bursatil Mexicano 9.4%. Proceeds from the primary portion are going toward general corporate purposes, including greenfield and brownfield construction. The sale also aimed to increase the liquidity of the issuer’s shares. Pinfra operates 13 road concessions, edging out ICA’s 12 to be the leader in Mexico, which account for 85% of revenue. Pinfra and the buyers in follow-on are betting it can win more greenfield and brownfield projects. It is difficult to define their chances before the new presidential administration enters, analysts say, but there is some degree of optimism given president-elect Pena Nieto’s track record while governor of the state of Mexico. Credit Suisse and JPMorgan managed the international portion, joined by Banorte-Ixe on the domestic side. Pinfra had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road constructio
CPFL Renewables Pulls IPO Plug
Brazil’s CPFL has officially cancelled registration for the IPO of its CPFL Energias Renovaveis unit, it says, confirming what the markets had long expected. It had planned to raise around BRL1bn ($495m) through the offer of primary shares, as well as secondary shares owned by several investment funds, including those linked to Patria Investimentos and Bradesco. The generator was looking to raise funds for projects. Bank of America Merrill Lynch and Itau were global coordinators, with Morgan Stanley, Bradesco and Banco do Brasil as bookrunners. The deal joins a long list of Brazilians putting plans on hold due to challenging market conditions. Drugstore Pague Menos and car retailer AutoBrasil were heard considering a second attempt this month, through their status is uncertain.
Market Awaits Pinfra FO
Mexico’s Promotora y Operadora de Infraestructura (Pinfra) had yet to price an equity follow-on late Thursday evening. The Mexican concession operator was scheduled to price 70.4m shares, including a 15% greenshoe, implying a MXP4.85bn ($380m) sale based on Thursday’s MXP68.85 closing price. The books were heard to be oversubscribed. Some 42% of the sale is destined for an international tranche. About 70% of the shares are to be secondary shares sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The sale also aims to increase the liquidity of the issuer’s shares, which trade relatively infrequently. The public float is to increase to 46.1% from 29.5%, with controlling shareholders ending up with 44.5% and funds linked to Grupo Bursatil Mexicano 9.4%. Credit Suisse and JPMorgan are managing the international portion, joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction and has been publicly traded since 2005. Mexico is emerging as the region’s equity hotspot following Santander Mexico’s $4bn IPO, with Mexichem scheduled for a $1.2bn-equivalent follow-on October 9 and Credito Real with a $200m-equivalent IPO October 16.