Andino Investment Holding, a Peruvian port logistics, port agency and warehouse operator, has received a loan for $85m from Goldman Sachs. The use of proceeds is to repay debt and increase its stakes in its operating subsidiaries.
Category: Loans
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Vale Loan Pricing Said to be Tight
Vale’s $3bn syndicated loan is offering a spread of 65bp over Libor, with fees of 15bp for utilization of up to 66% and 30bp for utilization above this, according to bankers with knowledge of the transaction. The loan is heard to be structured as a new 5-year revolver, for working capital purposes. Credit Agricole, JPMorgan, Mizuho and Natixis are joint leads on the deal. While market participants say the pricing is in line with loans for other international competitors, they say it is extremely tight considering the cost of funding for banks. “While it is possible to see the logic of the pricing if you look at the pricing of transactions by competitors, it is difficult to justify this pricing from a funding perspective, given the cost of funding for banks,” says one syndicated loans banker. Rio Tinto last year last year priced a 5-year revolver at 65bp over Libor, with utilization fees of 15bp for up to a third and 30bp for higher utilization.
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Barbados Gets IDB Loans
The IDB has approved 2 loans for Barbados, one for $30m and another for $10m. The 2 loans will be used to support sustainable energy technology acquisition and to enhance coastal zone management. Both loans are for a 25-year term, have 5-year grace periods and have variable interest rates based on Libor.
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Ecopetrol to Receive Ex-Im Loan Guarantees
Colombia’s Ecopetrol will get a $420m medium-term loan guarantee facility and $459.8m long-term loan guarantee facility from the Export-Import Bank of the US. The proceeds will be used to finance the purchase of products from US companies to develop oil and gas reserves, improve oil field production and upgrade refineries. Ecopetrol plans to increase petrol production to 1m barrels per day by 2015. The long-term loan guarantee facility will be used to help modernize Colombia’s largest refinery, the Berrancabermeja refinery, with the project estimated to cost approximately $4bn. The medium-term facility will support capital investments in the company. The proceeds will help Ecopetrol to process heavy crude and increase overall production capacity, as well as help Ecopetrol use clean technology, said Javier Gutierrez, president of Ecopetrol.
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Peru Gets CAF Loan
The government of Peru has signed a contract with CAF for an 18-year loan with a 5-year grace period for up to $150m, according to a release by Peru’s Ministry of Economics and Finance. The interest on the loan will be Libor plus 2.4%. The loan will finance irrigation infrastructure needed to bring 38,500 hectares into agricultural production in the Las Pampas de Majes – Siguas region. The first phase of the project involves work relating to the Angostura dam and the Angostura-Colca bypass, as well as some repairs. The first phase will cost $207.7m, to be financed by the loan and by the regional government of Arequipa. The second phase will consist of the construction of the Lluclla-Siguas bypass which will cost $217.28m. The second phase will be financed by the concessionaire.
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Mexico’s San Luis Potosi Gets Loan
The Mexican state of San Luis Potosi has received an enhanced loan for MXP1.48bn for 18 years, 9 months from Santander. The loan will pay a spread of TIIE plus 90bp, with proceeds being used to refinance a previous loan. The loan is payable through a trust, to which the state has pledged the flows and rights of 22.5% of its federal participation transfers. The loan is rated A1 on a national scale, reflecting the underlying creditworthiness of the state, the strong trust structure, solid debt coverage ratios, and a solid level of reserve funds, according to Moody’s. Under a base case scenario, cashflow would generate 4.8x debt service coverage at the lowest point during the life of the loan, or 3.9x under a stress case. Reserve funds represent a 2.0x debt service coverage over the life of the loan.
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Moody’s Chops Su Casita ABS
Moody’s has downgraded a Hipotecaria Su Casita construction loan securitization to B3/Ba3.mx from B1/Baa1.mx, and withdrawn the B1 underlying rating. The move comes after the Ambac financial guarantee on the senior certificates was canceled. The downgrade reflects the credit deterioration of the portfolio, says Moody’s. The ratings action also reflects concerns about the mortgage provider’s stability as a servicer of debt, as a result of the recent downgrade of the company’s issuer rating.
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Vale CFO Says Loan Only Backup
A $3bn credit facility being prepared by Vale is intended for standby purposes only, CFO Guilherme Cavalcanti tells LatinFinance. “Our idea is to increase the standby facilities by $3bn, and we are studying this,” he says. “It is just an insurance, and not intended to be drawn, only to increase flexibility,” he says. The Brazilian miner is in the process of choosing banks and leaning towards a 5-year loan, rather than a combination of 3 and 5 years, he says. The deadline for Vale’s RFP for a $3bn syndicated loan was moved to last Friday, after originally being set for last Wednesday, according to market participants. Winners should be announced this week and bankers expect 3 leads to be named. Cavalcanti says the cost should be similar to what it would get for a new syndicated loan with specific use of proceeds. Cavalcanti says this year Vale will focus on organic growth, rather than large M&A. As far as the bond markets go, the official says this year likely will only involve liability management. “We don’t need to tap the markets to finance our needs in 2011, but we always look for opportunities to lower the costs of our debt and extend maturities,” he says. Vale, whose $25.3bn total debt has a 10-year average maturity and average cost around 5.0%, should generate enough cashflow to cover its $24bn capex. The analyst consensus forecast is for about $35bn Ebitda from Vale in 2011.
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CSN Gets Caixa Loan
Companhia Siderurgica Nacional (CSN), the Brazilian iron ore miner and steel producer, has agreed to a loan from Caixa Economica Federal for BRL2bn, according to a regulatory filing. The loan amortizes in 94 months, adds the filing.
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Brasilena Eletronuclear Receives Financing Offer
Brasilena Eletronuclear, a subsidiary of Eletrobras, has received EUR1.5bn in financing from a consortium of banks, according to a finance official at Eletrobras. Societe General is the MLA, with BNPP, Credit Agricole, Santander, BBVA and CIC making up the rest of the syndicate, adds the official. The loan will fund development of a nuclear plant, Angra III in Rio de Janeiro. The maturity is heard to be for 30 years. The official declined to comment on the pricing of the loan. The financing still needs to be approved by the Brazilian government.