US-based private equity firm H.I.G. Capital has opened an office in Rio de Janeiro, hiring Fernando Marques Oliveira to head it and lead the firm’s LatAm operations. It is the first regional office for H.I.G., which operates in North America and Europe. Oliveira joins from General Atlantic, where he was involved in several LatAm deals, including investments in Mabel, Aracruz and Grupo ABC. H.I.G. has $8.5bn under management globally.
Category: Equity
Posted inDaily Brief
Bancolombia Prices New York Follow On
Bancolombia has raised $300m in the international portion of its follow-on equity offering, pricing 5m ADRs representing 20m preferred shares at $60.00 each, according to bankers on the trade. The deal represents the remaining shares after Colombians bought 44m shares at COP26,000 each to raise COP1.14trn ($614m) in a domestic offer that closed last week. The price comes at a 3.24% discount to the ADRs’ $62.01 Tuesday close. The $914m-equvalent total follow-on comes as the bank seeks additional capital after spending $150m to join Grupo Sura’s bid for ING’s LatAm insurance assets late last year. It has also been trying to improve operational efficiency. UBS was global coordinator of the ADR sale, with Bank of America Merrill Lynch and JPMorgan coming in as joint bookrunners. Bancolombia’s own capital markets arm managed the domestic portion. Bancolombia’s Colombian shares closed Tuesday at COP27,960.
Posted inDaily Brief
Bancolombia Preps NY ADR Sale, Closes Local Issue
Bancolombia appears set raise COP1.14trn ($614m) from domestic investors participating in its equity follow-on that closed Friday, with an international portion pricing as soon as today. Locals buyers demanded 44m shares out of a total of 64m shares, the bank says, with the remainder to be sold through an ADR offering expected to price today or tomorrow. The local tranche was launched at the beginning of the month, with the Colombian bank offering the shares at a price of COP26,000 each. Bancolombia’s own capital markets arm managed the domestic portion. UBS is global coordinator of the ADR sale, with Bank of America Merrill Lynch and JPMorgan participating as joint bookrunners.
Posted inDaily Brief
Peru Port Operator to Try IPO Again
Peruvian logistics company Andino Investment Holding (AIH) expects to price a $50m-$60m IPO on Thursday after cancelling an initial sale that had been scheduled for January 19. The port and logistics operator is looking to sell 15m-30m shares, and is expected to price at around PES5.00 ($1.86) per share. Proceeds are be used to reduce debt and for expansion projects. BCP is managing the sale. AIH borrowed $85m from Goldman Sachs last year to purchase fellow port operators Neptunia and Agencia Maritima.
Posted inDaily Brief
Seabras Reschedules Equity Debut
Seabras Servicos de Petroleo has pushed backing the timing of an up to BRL1.44bn ($823m) IPO to early April after having initially scheduling pricing for next week. The Brazilian spinoff of Norwegian oil services provider Seadrill explains that it has reached an agreement with Petrobras, its main client, to make “certain changes to its corporate structure,” but it cannot do this and still carry out the IPO with its 3Q2011 numbers. As a result, it will have to re-file with 4Q2011 numbers, meaning an April pricing is more likely. Seabras intends to sell 48m primary shares, setting a range of BRL20.00-BRL26.00 per share. This would indicate a BRL1.44bn size at the top of the range, or a BRL1.1bn sale at the bottom, assuming a 15% greenshoe is used in each case. A 20% hot issue is also available. The owner of 3 drillships with long-term Petrobras contracts was spun off last year and is raising funds for acquisitions and other investments as it looks to cover a wider range of oil field services in Brazil. It generated BRL524.7m in Ebitda in the first 3 quarters of 2011, up from BRL371.2m in the corresponding period in 2010. It is also negotiating a 50-50 joint investment with pipe-laying support vessel operator and fellow Petrobras contractor SapuraCrest. BTG Pactual, Morgan Stanley and Citi are managing the deal. Brasil Travel is expected to be the first IPO from LatAm this year after scheduling an up to BRL1.21bn offer for February 8. However, Peru’s Andino Investment Holdings could beat it to the punch if a rescheduled $50m-$60m IPO goes ahead Thursday.
Posted inDaily Brief
EM Equity Brings in Billions
EM equity funds brought in $3.5bn for the week ending January 25, with LatAm funds accounting for $270m of the total, according to EPFR. LatAm funds were up 1.68% for the week ended January 26 and up 12.23% for the year, according to Lipper. EM funds gained 1.95% on the week and have risen 9.78% on the year. That compares to a 1.50% weekly rise among global small and mid-cap funds, which have climbed 7.87% on the year.
Posted inDaily Brief
Fund of Funds Marks First in CCD Market
AGC Controladora, a private equity manager affiliated with US-based Northgate Capital, has filed for a certificado de capital de desarollo (CCD) transaction in Mexico’s domestic market. The transaction is being called the first fund of funds in the CCD market, though it will be able to make direct investments in Mexican companies in addition to other PE funds. The private equity firm plans to raise up to MXP13bn through a 10-year fund, but is initially seeking MXP2.6bn, plus future capital calls. Regulators decision last year to allow capital calls in CCDS ended a debate that had slowed issuance for the 2-year-old asset class. Bankers are now optimistic that CCD market will resume activity at a healthier pace. The ACG fund plans to invest in a variety of sectors, but return structure varies somewhat from most PE fund-based CCDs. Investors receive their initial investment plus a preferred return equivalent to the Mexican Bolsa’s plus 500bp, before the managers take a 5% cut, with any remaining funds being divided between investors (95%) and managers (5%).Vector is managing the sale. AGC targets a closing of March 14, according to the documents, though CCD closings typically lag initial filings by several months.
Posted inDaily Brief
Pemex Settles Differences with Repsol
Pemex has agreed to work with the management of Spain’s Repsol and to keep its ownership stake in the company. The more cooperative stance marks major turnaround for the Mexican state-owned oil company, which up until now had sought to build alliances with other shareholders to revamp management at the Spanish firm. The companies are putting together a 10-year cooperation agreement that will involve working jointly in business opportunities that arise in the upstream, downstream and LNG sectors in the Americas, as well as the downstream business in Spain and Portugal, Pemex says. In Mexico, executives from both companies will evaluate and promote joint business opportunities as well. In turn, the Mexican state oil company has agreed to maintain a stake in Repsol of anywhere between 5% and 10%, and to “support the strategic plan and structure of the current Repsol management,” Pemex notes in a statement. It currently holds a 9.5% stake in Repsol. Pemex increased its stake to 9.5% last year and struck a failed agreement with Spanish builder Sacyr-Vallehermoso, another Repsol shareholder, to force a change in Repsol’s top brass. Pemex even considered spending an additional EUR854.3m to up its Repsol stake to 12.5%, and gain a greater say in the company. The deal fell apart, however, when the cash-strapped Sacyr was forced to sell half of its 20% stake back to Repsol in late 2011. “For the moment Pemex is not considering reducing its Repsol stake. We’ve put a 5% floor as a way to give us some room to maneuver but nothing more,” a spokeswoman says. Although the Mexican oil company enjoys generous after tax cash flows, the Mexican government’s tax take is considerable and the company struggles with lower oil reserve replacement and higher leverage than its international competitors.
Posted inDaily Brief
Duratex Gets BNDES Funds
Brazilian wood and metal products company Duratex is set to receive BRL273m in funds from BNDES. The development bank has agreed to acquire BRL100m in 2017 convertible domestic bonds, pending shareholder approval. The bonds are convertible at BRL12.87, which compares to a BRL9.50 closing price Tuesday. BNDES will also provide a loan of BRL173m, the details of which Duratex does not disclose. Officials at the company could not be reached for comment. Duratex, 35% controlled by the Setubal family, is raising funds to expand its plant in Itapetininga, Sao Paulo state.
Posted inDaily Brief
Vapores Adds to Equity Raise
Chilean shipping and ports operator Compania Sudamericana de Vapores has raised CLP63.51bn ($129m) in the public phase of its equity follow-on, adding to the $659m raised so far. The issuer, working under a $1.2bn capital raising approval last year to help straighten the company’s finances, sold 630m shares at CLP100.81 each, according to a regulatory document. Vapores got CLP12.61bn in demand from 52 orders, comprised 83% of institutional and 17% retail. Celfin managed the trade. Vapores is controlled by Quinenco, the investment arm of the Luksic group. The plan also includes the spinoff of the company’s port and logistics unit, Sudamericana Agencias Aereas y Maritimas.