Category: Loans

Brazil’s Odebrecht is in the market with financing for platforms costing $1.35bn in total. It is heard seeking MLAs for $100m tickets to build a $860m commercial bank syndicate on a 12-year deal. Pricing during the sounding process is heard at 250bp over Libor for the 1-2-year construction period, 275bp for years 3-6, 300bp for years 7-10 and 325bp for years 11-12. An MLA fee of approximately 200bp is being offered, according to bankers familiar with the terms. There is also a $220m ECA tranche. Proceeds will be used to build 2 oil platforms, ODN 1 and ODN 2. BNP and HSBC are heard leading the process. “Pricing is getting aggressively lower in Brazil but it seems expensive compared to where Petroserv, who is a proven operator, is coming,” says a New York-based banker familiar with the transaction. Petroserv is said to be shopping a $460m facility for a $720m project. A price of Libor+290bp is rumored on the 6-year and Itau is understood to be holding $230m of the total. The deals mark an uptick in Brazil platform funding activity. Quiroz Galvao is heard looking to mandate a $700m+ 10-year deal for Alpha Star, which would also include ECAs, say bankers. A spread in the low 200s is rumored. This competing supply could affect participation in Odebrecht, as some portfolios could hit exposure limits, according to the New York-based banker. He adds that some lenders could may also have issues with the 20%-30% balloon structure. However, he says the facility may still be attractive from a relationship standpoint. “The size of the conglomerate means banks will participate because of the other opportunities it could offer,” he tells LatinFinance. “This is very much a relationship deal, which is what makes it appealing.”

Peru-based Pluspetrol Lote 56, a unit of Argentina’s Pluspetrol, has sold $124.5m in bonds in 2 tranches. A $27.5m 5-year tranche pays 300bp over 3-month Libor. Total demand was $32.8m. A $97.0m 10-year meanwhile pays 350bp over 3-month Libor. Total demand for that slice was $124.1m. Proceeds will be used to finance investments and working capital, the company says. Credibolsa handled the AAA rated issue.

Brazil’s Banco Fibra is out with a $90m A/B loan through the IFC, Itau and Santander. A $15m IFC 4-year is shopped at 275bp over Libor, while a $75m 2-year B tranche pays 210bp. It is expected to close shortly and be oversubscribed, according to a banker on the deal.

Petrobras is understood to be looking to close more large bilateral loans after recently closing a $1bn 7-year at Libor+179bp through Standard Chartered. Citi and other banks are believed to be working on similar facilities. Though the margin looks thin, the deal also carries fees and a banker familiar with the terms says it offers a decent pickup to the bond. Some loan market specialists say that Petrobras is incurring risk by leaning on relationships, and should look to diversify. “They are always doing bilats but they will definitely need to open up to other source of funding or pay up,” says a banker. “Banks are getting very full of the exposure,” the loans expert adds. Other Brazilian borrowers are heard pursuing a similar strategy. Votorantim is rumored to have secured 7-year money on a bilateral basis at 210bp and 8-year money at 225bp, also in $1bn clips from several banks. Facilities for Fibria were understood to have been wrapped in.

Santander Chile is having selective one-on-one meetings this week to get participation on a $125m 18-month loan priced at Libor+80bp for Aa3 risk. Bankers say it compares favorably to Corpbanca’s 95bp for a BBB+ 2-year, but European demand is expected to be very limited. “It doesn’t make sense to lend at Libor plus 80bp to a competitor when you are paying more than that to borrow,” says a banker not on the deal. Standard Chartered is the lead.

Groupo Votorantim has raised $1.04bn billion in a pre-export loan through its Votorantim GMBH unit. A $620m 8-year tranche pays Libor plus 2.25%, and a $420m 7-year piece pays Libor plus 2.10%. Proceeds will be mainly used to repay loans maturing in the next 3 years, the Brazilian conglomerate says. A debt management strategy in place since 2009 focused on lengthening the maturity profile. Banco do Brasil, Bank of America Merrill Lynch, BBVA, Citi, Deutsche Bank, HSBC, Itau, JPMorgan, Santander and Societe General are listed as joint lead arrangers.

Peru and multilateral bank CAF have signed a $300m loan for rebuilding after natural disasters including earthquakes and floods. The loan has an 18-year term, a 4-year grace period and Libor-based interest rate. Separately, the IDB has approved a $50m loan for Peru to finance reforms to improve business productivity and competitiveness. The loan has a 1-year maturity, a grace period of 5 years and pays interest based on Libor.

Central American airline TACA has closed a $100m 5-year structured loan syndication through Citi paying at 600bp over Libor, tight to 625bp initial pricing. The amortizing deal has 1 year of grade and an average life around 3.2 years. Some 16 banks were heard signing on, most of them from Central America. The deal was pulled last year and was adjusted in price to reflect tighter prevailing market conditions. The facility will be repaid primarily by airline ticket sales using a trust structure based in Panama to isolate the payment streams. The transaction was heard well oversubscribed. Chadbourne & Parke was counsel to Citi, which acted as admin agent and lender.

Grupo R has closed its $225m 5-year platform syndication through BBVA with 9 banks on board. Joint bookrunners and MLAs are BESI, Natixis, NIBC, Societe Generale, Unicredit and WestLB. MLAs are Credit Industiel et Commercial and Sumitomo Mitsui Banking Corporation, while ITF came in as a senior lead arranger. It pays Libor plus 375bp in the first 2 years, 400bp in years 3-4, and 425bp in the fifth year, with up-front fees of 300bp. BBVA was financial advisor and admin agent on the deal, which it says was oversubscribed. The transaction supports the acquisition of PetroRig III, an ultra-deepwater semi-submersible drilling rig that will operate under a lease with Mexico’s Pemex. PetroRig III is a sixth generation ultra deepwater semi-submersible mobile offshore drilling unit of Friede & Goldman ExD Design. It is designed to operate at a water depth of 7,500 feet and drill up to 40,000 feet, and was built by the Jurong Shipyard in Singapore.