Credito Real, the Mexican discount payroll lender, is looking to go public on the local bolsa as soon as the middle of this year, says a person close to the company. The IPO could raise at least $200m equivalent for a 20%-30% stake, says the source, who asks not to be identified. The deal through UBS, Morgan Stanley, BBVA Bancomer and Ixe will be done in Mexico but also have a 144a component, adds the source. Other candidates to go public this year, Mexico-based bankers say, include dairy Grupo Lala, theatre operator Cinepolis, paint maker Comex, airline Volaris and hospital operator Grupo Angeles, in what bankers say could be another busy year for IPOs. Some predict another 10-15 transactions, though bankers concede that individual deal size will likely be small. Mexico-based Nexxus Capital Private Equity Fund III took a 22.5% stake in Credito Real in November 2007. The rest of the company is owned by the Berrondo (majority), Saiz and Esteve families, who also own Mabe. Credito Real in September raised $60m in a reverse inquiry-driven retap of its 10.25% coupon 2015 bonds. The payroll discount lender reopened at par, to yield just under the 100.50 secondary price at the time. Bank of America Merrill Lynch (BAML) managed the sale, which brings the outstanding amount to $210m. The BB minus rated borrower in April raised $150m in a debut issue, also priced at par and managed by BAML. The source close to the issue says the bond was trading up at 108 this week.
Category: Equity
CAB Ambiental Sets IPO Target
CAB Ambiental, a Brazilian operator of water and sanitation concessions, is aiming to raise about BRL100m in an IPO on the Bovespa Mais, expected to price March 2. Sao Paulo-based CAB, which stands for Companhia de Aguas do Brasil, plans to sell 7.16m shares at a range of BRL11-BRL14, according to an announcement. Such a deal would raise BRL103m if priced at the midpoint and a 15% greenshoe is exercised. A 20% hot issue is also possible. CAB operates 11 concessions and 2 PPP contracts of 16-30 years, in the Sao Paulo, Parana and Mato Grosso states, serving a total population of 4m. Owned by the Galvao Participacoes conglomerate, CAB posted Ebitda of BRL7.3m in the first 9 months of 2010, compared to BRL3.7m in all of 2009. Banco Safra and Banco do Brasil are managing the sale. The Bovespa Mais is a special section of the Bovespa designed to draw smaller issuers. Companies can list under less stringent volume requirements. March 2 is also the date when restaurant operator International Meal Company Holdings is scheduled to price, and the pair are the next two deals in the Brazilian equity pipeline.
Brazilian Engineer Plans Float
Brazil’s Enesa is heard planning an IPO, according to a source familiar with the issuer’s plans. The engineer and builder active in the industrial, energy and infrastructure sectors, is said to be preparing to come to the Bovespa in the first half of the year, and to have named Credit Suisse as one of the managers. Enesa is known as a contractor for Petrobras, and would be among the first in a long line of Petrobras providers that investors and bankers expect to raise equity to support Petrobras’ pre-salt exploration.
Equity Funds Suffer More Outflows
In the week ended February 9, LatAm equities had outflows of $471m, their biggest weekly outflow since mid-Q2 2010, according to EPFR Global. Within LatAm, Brazil funds lost $164m, but Peru attracted $47m. EM equity funds meanwhile lost $3bn. Performance for LatAm equities was also negative, with Lipper data showing that in the week ended February 10 they were down 3.66 %. Year-to-date they have dropped 8.33%. Meanwhile, EM equity funds dropped 3.52% in the week and are down 5.72% ytd and global small and mid-cap funds gained 0.21% in the week and are up 1.19% ytd.
Argie Banks Heard with IPO Plans
Argentine FIGs Banco Supervielle and Banco Comafi are each heard interested in having IPOs this year, according to New York-based bankers familiar with the matter. Supervielle is planning an IPO in New York, according to bankers familiar with the matter. The bank is heard to be aiming for the first half of the year, and having hired Credit Suisse, and may add another bookrunner. The deal size for Supervielle could be for up to $200m, they say. Comafi’s plans are heard as less defined, bankers say, and has not chosen any banks yet.
CSN Ups Stake in Riverdale
Brazilian steelmaker CSN has increased its stake in Australia-based miner Riversdale Mining to 17.58% from 16.29%, according to a filing on the Australian Stock Exchange. CSN paid AUD52.1m, or AUD9.40 per share for 5.6m shares. On January 24, Riversdale directors recommended shareholders accept Rio Tinto’s offer to acquire the company for AUD16 per share, or AUD3.9bn. On January 21, Australia’s Treasury approved the deal. Rio Tinto made its offer on January 11.
Arcos Looks to Float
Arcos Dorados, the company managing LatAm McDonald’s franchises, is preparing to IPO in New York, ECM bankers say. A deal could come as soon as the first half and raise about $1bn. Bank of America Merrill Lynch, JPMorgan and Morgan Stanley are heard being hired to manage the deal. Buenos Aires-based Arcos operates throughout the region and is known to debt investors from a $450m bond sale in 2009. The group of controlling investors led by Woods Staton includes Capital International, Gavea Investimentos and DLJ South American Partners. George Soros-backed Adecoagro opened the 2011 LatAm US listings last month. Though Adecogro’s $314m deal priced at $11, below its target range of $13-$15, it closed up Wednesday at $12.90 Wednesday.
BHG Raises BRL85m
Brazil Hospitality Group has raised BRL85m through a private share subscription, it says. The tourism-oriented real estate developer formerly known as Invest Tur Brasil sold 4.5m new shares at BRL18.50 each. Among the investors participating were Leblon Equities Gestao de Recursos, Reef America and Manulife Asset Management. “This operation is strategic for the growth of BHG. We have a number of opportunities for purchasing and developing hotels, and the resources of this operation will finance the expansion of our network,” BHG says in a statement.
EMX Expects $120m for CCD Fund
EMX Capital’s local CCD fund is expected to close on $120m-$150m equivalent in about 2 weeks, according to 2 Mexico-based bankers close to the firm. The Mexico-based PE firm’s multi-sector fund will make average equity investments of $30m-$40m per project. Last year, the fund had been expected to raise only $120m. Other Mexico firms are also raising CCD funds. On February 2, Nexxus Capital made its first closing of $70m on its Nexxus V fund, says director Roberto Terrazas. He expects to raise an additional $50m-$70m before a final closing in March.
Follow-ons Set to Price
Equity deals from Brazil’s Direcional Engenheria, Argentina’s Ternium and Mexico’s Banorte are each set to close books today and price this evening. Brazilian steelmaker Usiminas plans to sell as much as its entire 14.25% stake in Argentine peer Ternium. The sale, in the form of ADSs, includes $150m worth of shares it has agreed to sell to Ternium directly and $100m it has agreed to sell to Ternium’s controller, Techint, with the remainder to be sold publicly. JPMorgan is global coordinator, with BAML, BTG Pactual, Citi and Morgan Stanley as bookrunners. Mexico’s Gruma is scheduled to sell most of its 8.8% stake in Banorte. The tortilla maker plans to sell up 141.9m shares in the bank in the US, Mexico and other markets, with the option of a 14.2m greenshoe. At Tuesday’s MXP53.66 closing price, Gruma would get up to MXP8.38bn from the sale. Books are set to close today, with pricing to be announced tonight or Thursday. The available shares represent 7.7% of Banorte, lowering Gruma’s holding to 1.1% from 8.8%. Banorte, BBVA Bancomer, Morgan Stanley and UBS are managing the sale. Finally, homebuilder Direcional is set to offer 20.8m primary and 7.2m secondary shares, which would raise BRL367m at Tuesday’s BRL13.10 closing price. Bank of America Merrill Lynch, Itau, BTG and Santander are managing the deal, which in initial documents had been scheduled for Tuesday.