Category: Loans

Brazilian steelmaker has wrapped up syndication of a $150m 7-year B loan. The margin is 150bp over Libor after an increase from launch at 137.5bp. The company raised an additional $50m in 9-year funds via an IDB A loan. Sumitomo, Standard Chartered, HSBC are heard to have joined the syndication led by Citi. Gerdau is one of the most active users of LatAm markets in the past year. Last fall it secured $2.75bn through a loan with 5 and 6 year tenors at 100bp and 125bp, respectively, over Libor to acquire Chaparral Steel. It also issued $1bn in 10-year bonds to yield 7.375% the following month as part of the same process. Soon after, Gerdau bought a 49% stake in Mexico’s Aceros Corsa for $100.5m, and followed with a $1.46bn acquisition of Quanex’s Macsteel. This year, it raised $2.6bn in an equity follow-on and $500m through a 3-year syndicated loan at Libor plus 125bp. It reopened its 2015 bonds in May for $500m to yield 6.875% and yesterday landed $200m from the IDB and commercial banks.

Panama-based supranational bank Bladex has closed a $150m 2-year facility priced at Libor plus 85bp. Santander and Standard Chartered led the process, which Bladex claims garnered commitments of $245m. A total of 13 banks participated in the loan and Bladex said in June that proceeds would go towards refinancing an August maturity. The bank is heard also planning an issue worth $50m denominated in PES from a $300m shelf. The debut issuance from the program was $40m equivalent in 7-year notes priced near the sovereign. A $300m equivalent MXP offer is also in the works. Bladex was in December upgraded to Baa2 by Moody’s. It also recently hired Merrill Lynch’s head of research Tulio Vera to run asset management.

The Caribbean subsidiary of UK-based Cable Wireless has landed $300m through a syndicated loan, say bankers familiar with the deal. The 3-year facility pays Libor plus 225bp. The deal is priced as a Caribbean credit, though the borrower benefits from the sponsorship of its UK parent, say the bankers. C&W has operations in 13 Caribbean jurisdictions including Jamaica, the Cayman Islands and Barbados. BNP Paribas and JPMorgan led the deal, much of the syndication for which is heard to have been run out of London. Elsewhere, Digicel, one of the largest telecoms in the Caribbean, was heard testing market appetite for a loan. Sellsiders close to the company, however, deny the company is in the market for new funds.

Chilean electric generator Colbun has placed $80.8m in dollar-denominated 2018 bonds on the local market. The AA-/A rated notes priced at the 180-day Libor plus 2.1%. Celfin Capital managed the sale. The transaction comes one day after its placement of $201m in two series of inflation-indexed bonds and the closing of a $400m 5-year term loan. The deal is the second dollar placement this year in the local markets, after steelmaker CAP’s $173m 3.1% 2018 bond in May. The dollar option is a useful diversification play for larger Chilean companies, says a banker on the transaction, as demand for USD-denominated debt grows in the local market, especially among pension funds and insurance companies. Earlier this week, the electricity generator placed $80.5m equivalent in 2014 bonds denominated in the UF inflation-linked unit at 99.57 with a 3.80% coupon to yield 3.89%, and $121m equivalent in 2028 UF-denominated bonds at 95.90 with a 4.50% coupon to yield 4.89%.

Itau BBA, which is on the road syndicating a $200m 3-year deal at Libor plus 95bp, is heard looking to grow the facility to $300m, say bankers close to the process. The investment banking arm of Itau is understood to be gaining traction with Asian lenders in particular. Despite finding favor, Itau BBA is paying up for being in the market in the current environment, which has seen margins for all borrowers gap out, especially for financial institutions. Parent Itau SA raised a $200m 2-year facility in October at Libor plus 40bp. BNP Paribas and Unicredit are leading the Itau BBA deal.

S&P has put its BBB+ rating on Mexico’s Metrofinanciera Construction Loan Trust #650’s notes series 2007-1 on CreditWatch with negative implications. The notes are backed by construction bridge loans originated and serviced by Metrofinanciera. “The CreditWatch placement reflects the current portfolio, which is not performing as we had expected when we assigned the original rating,” says the agency. “Specifically, this series shows high delinquency levels that could potentially reduce the credit enhancement protection required for this rating level.” the agency adds that it may take further rating action on the series 2007-1 notes in coming weeks, depending on servicing strategies and performance.

In a July 9 Daily Brief entitled “Peru LNG Closes Project B Loan,” a change to pricing of a $400m syndicated B loan was incorrectly stated. A change to 100bp from 65bp was made to the fees on the facility, not the margin, as was originally suggested. The margin remains Libor plus 75bp for the entire 3.5-year construction period. In the post completion period, the facility steps up to 100bp in years 1-3, to 112.5bp over Libor in years 4-6, to 125bp in years 7-9 to 137.5bp in years 10-12.

Banco BBM, the mid-sized Brazilian bank, has syndicated a $185m IFC B-loan, which funded last week. The 3-year bullet pays Libor plus 175bp, and was led by Standard Chartered, Banco Real, which is being folded into Santander in Brazil, and the IFC. Ten banks are heard to have taken tickets. In 2006, the IFC lent BBM a $50m 7-year bullet A-loan at an undisclosed margin.

Mexican regional telecom carrier Alestra is heard preparing to formally launch a $280m 5-year loan. The company is looking to syndicate the 5-year facility which offers Libor plus 237.5bp, says a banker away from the deal. Citi and Standard Bank are heard leading the transaction.

Grupo Cementos Chihuahua (GCC), the Mexican cement company, is in the market with a $200m 5-year loan via BBVA. The facility pays Libor plus 125bp, which one banker away from the deal says may just clear the market. “My only concern with this is that banks may be more averse to the companies with exposure to the housing sector and have shied away from loans with longer tenors,” says the banker, adding GCC is a very good company, and should be able to raise the funds.