Brazilian construction and engineering firm Odebrecht has a total of 7 banks on board its $300m 10-year loan to finance the conversion of a floating production, storage and offloading (FPSO) unit. Sumitomo and Societe Generale are leads, and another 5 banks are heard committing. The unit is being converted in Singapore and is expected to be ready early next year.
Category: Loans
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OSX Nears Finish Line
Five banks are heard signing up for OSX’s $850m loan to finance the construction of a floating production storage and offloading (FPSO) vessel OSX-2 in Singapore. The transaction is expected to close in October and is being led by ING, Itau and Santander. The loan has a 12-year final maturity with a 7-year average life, offering a margin L+425bp pre-construction and +410bp thereafter. Including the bookrunners, the deal now has 8 banks in total. This comes despite difficulties earlier this year when some banks were heard giving the transaction a wide berth amid euro-zone worries and higher funding costs. Bankers also expressed concerns over how the company, controlled by Brazilian magnate Eike Batista, lacked a track record. Against this backdrop, leads were forced to flex pricing up to L+425bp from 375bp pre-construction and to +400bp from 360bp thereafter.
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Bankers Await Mandate on Reficar Financing
Bankers are expecting a mandate to be awarded as soon as next week on a $3.5bn funding package to upgrade Ecopetrol’s Reficar refinery in Cartagena, Colombia. The loan will comprise direct funding from US Ex-Im Bank, a commercial tranche and another portion covered by the Italian export credit agency SACE. The commercial portion is expected to be anywhere between $850m-$1bn in size, as US Ex-Im is contributing about $2.6bn. Tenors are expected to be between 14 and 16 years.
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KCSM Amends and Extends
Transportation company Kansas City Southern de Mexico has amended and restated a $100m loan due 2013 by securing a $200m credit facility that expires 2016. JP Morgan and Bank of America Merrill Lynch, acted as joint lead arrangers. Those two banks along with BBVA also acted as joint bookrunners, while RBS, Citibank, Comerica Bank, Wells Fargo and Scotia Capital came in as lenders.
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Uruguay’s Monte del Plata Secures $1bn Plus
Uruguayan pulp mill project Montes del Plata, a joint-venture between Stora Enso and Arauco, has raised $1.354bn in the loan market. The financing package consists of a $900m 12-year ECA tranche, a $200m 12-year B loan from the IDB and a $254m commercial B loan. ECAs included Finnish export credit agency (FEC), and Sweden’s SEK. The new pulp mill at Punta Pereira is being financed through equity and loans, and is expected to be up and running by the first quarter of 2013.
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ENAP Seeks Tight Margin on New Loan
ENAP is seeking to pay L+80bp on a $300m 5-year loan, but many are wondering how much interest the Chilean state-owned oil company will lure at that level given the rising cost of funding at banks. “Considering that Deutsche Bank issued 2-year (debt) at around L+100bp, you wonder how many banks will be signing up for this,” says one DCM official. Indeed, higher funding costs mean that some institutions would take a loss at these levels, though banks with access to cheaper domestic markets may be able to justify such margins. “We need at least 100bp for dollar funding,” adds a loan banker. Future bond business may be an incentive, and the company’s quasi-sovereign status should bring some comfort, but on a standalone basis the credit isn’t particularly healthy, say bankers. “They have high leverage. Everyone expects the government to step in if need be, but there are no explicit guarantees,” says the loan banker. Leads Bank of Tokyo Mitsubishi, BBVA, HSBC and JP Morgan are offering MLA, arranger and manger tickets of $50m, $30m and $20m, with upfront fees 45bp, 30bp and 20bp, respectively. Commitments are due October 21.
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CEB Plans Federal Loan
Companhia Energetica de Brasilia (CEB) is negotiating a BRL877.5m ($477m) loan with BNDES and Caixa Economica Federal. There are no additional details available about the facility which still must be approved. Proceeds will be used to repay debt and for planned investments. CEB is including a plot of land valued at BRL274m as a guarantee.
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ENAP Seeks Loan Funding
ENAP plans to hold bank meetings Thursday for a $300m 5-year loan via Bank of Tokyo Mitsubishi, BBVA, HSBC and JP Morgan, says a banker away from the trade. Pricing details have yet to be unveiled. Earlier in the year, the Chilean state-owned oil company sent out RFPs to raise $500m in the loan market via either 3 or 5-year tenors, but bankers hadn’t discounted the possibility of a 10-year USD bond or perhaps a 5-year local loan. Given the state of the market, it is hardly surprising that the borrower is seeking a smaller size at this stage and focusing on core relationship banks. The company had been eyeing the loan market as early as last year, but opted instead to issue a US$500m 10-year bond which was priced in August at 99.593 with a 5.250% coupon to yield 5.300%, or UST+240bp, inside of the 250bp (+/-5bp) guidance. Demand for the paper reached a healthy US$2.5bn despite a downgrade that year. BAML, BBVA, BNP and Scotia managed the bond sale.
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Exalmar Unveils Margins on Loan
Peru’s Pesquera Exalmar is offering a margin of Libor+390bp on a $140m 6-year senior secured term loan, with commitments due by October 13. Leads are offering fees of 100bp for ticket sizes of $10m-$19.9m, 125bp for $20m-$20.9m and 150bp for $30m plus. There is also an early bird incentive fee of 15bp for institutions that participate within the first 2 weeks. The loan is secured by insurance policies and export receivables and proceeds are going to refinance debt, including a similarly structured $80m loan, as well as capex and working capital. The loan will be paid in 16 equal quarterly payments staring in year 2, with a final lump sum payment on maturity equal to 15% of the entire loan. The deal was launched this week via leads HSBC, Santander and WestLB.
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Exalmar Launches Loan
Peru’s Pesquera Exalmar has launched a $140m 6-year senior secured export facility via HSBC, Santander and WestLB, according to a banker who received an email invitation. Late last year the fishery became the first Peruvian company to IPO since 2007. That transaction raised PES341m and was led by Santander, Citi and Interbank.