Category: Loans

Power generator Endesa Chile said it has raised a $400m syndicated to refinance a maturing bond of equal size. The deal carries a 6-year tenor at a margin of Libor plus 75bp, and is split evenly between a revolver and a bullet. The bond it took out had a coupon of 7.75%. BBVA, Caja Madrid, Bank of Tokyo, Santander and Banesto led.

Cofide, the Peruvian development bank, closed last week a $185m 3-year step-up loan. The unsecured facility was upsized from an originally targeted $150m. Pricing rises from Libor plus 150bp to 162.5bp and 175bp in years one, two and three, respectively. The borrower increased deal size from $150m. Standard Chartered and Barclays led. Some 15 banks participated in the syndication.

Scotiabank’s Peru unit has succeeded in closing a $280m amortizing facility after it tweaked terms. The loan was originally launched as a 5-year $200m facility at Libor plus 120bp. But difficult market conditions forced a trimming of the tenor to 3 years, a 5bp bump on the margin to Libor plus 125bp, and, according to bankers away from the deal, an increase in fees. The adjustments did the trick and permitted Scotia to increase the facility to $280m, according to people close to the deal. Interbank, another Peruvian financial institution in the market with a similarly sized loan, had less luck. Despite flexing the margin and making part of the facility trade related, the 3-year deal paying 85bp-95bp for trade and 100bp-120bp for working capital found no takers and was pulled. Standard Chartered led that deal, which may yet return if conditions improve.

Brazilian steelmaker Gerdau has closed a $500m 3-year facility through Citi. The deal is composed of a $400m senior term loan and a $100m revolver, both paying 125bp over Libor. Proceeds are being used to pay down acquisition debt taken out for the company’s purchase of US-based Macsteel. The company says a total of 20 banks participated in the deal.

Cofide, the Peruvian development bank, has raised $185m through a 3-year step up loan facility, say bankers close to the process. The deal, which steps up from 150.0bp to 162.5bp and 175.0bp over Libor, was upsized from an originally targeted $150m. Barclays and Standard Chartered led the deal.

Javer, the Mexican homebuilding company, is heard to have closed syndication of a $160m facility. The deal was originally launched as a 5-year amortizer paying Libor plus 350bp. Credit Suisse, the lead, was joined by ABN AMRO, Inbursa and Santander at the top level with a small group of banks at the lower level, say bankers away from the process. The transaction was last month heard dragging its feet.

Banco General, the Panamanian bank, has raised $160m through a 2-tranche syndication. A 2-year $90m A tranche pays Libor plus 75bp, while a 3-year $70m B portion offers Libor plus 85bp. Up front fees for both pieces are as follows: 30bp and 50bp for $15m tickets; 20bp and 40bp for $10m tickets; and 15bp and 30bp for $5m commitments. Unicredit and BNP Paribas led the facility, a refinancing originally targeting $100m, which was upsized based on demand. The transaction was oversubscribed by more than 50%, according to the leads. Wachovia joined as documentation agent, with Commerzbank, Banco Nacional de Panama and Bank of Tokyo-Mitsubishi as MLAs. Co-arrangers were Credit Suisse, Dresdner, HSBC and JPM. Meanwhile, Banca Monte dei Paschi di Siena, Citi, Landesbank Baden-Wurttemberg and Natixis came in as managers.

Buenaventura, the Peruvian mining company, has taken out a $450m bridge loan with a syndicated loan of the same size. The facility, due 2013, pays Libor plus 225bp, and was led by Peru’s Banco de Credito del Peru. Proceeds are being used to unwind a gold hedge.

Peru’s Cementos Lima is heard in the market with a project loan to finance a new venture in the US called Drake Cement. The $106m facility pays Libor plus 135bp and has a parent guarantee during the construction period through the scheduled completion date, says a banker away from the deal. Should the project run over, pricing switches to Libor plus 160bp. In the post construction period, starting in year four, pricing begins at Libor+150bp and steps up to 170bp in year five, 190bp in year seven and 210bp in year nine, says the executive away from the transaction. BBVA is heard leading.

Chilean pulp and paper company CMPC has launched a 5-year bullet loan of up to $250m to a group of relationship banks. The deal offers Libor plus 55bp, a seemingly thin margin given the cost of funding for banks today, though considerably wider than what the Chilean borrower might have achieved a year ago. Bankers away from the deal speculate CMPC will succeed in raising the funds, though it may have to resort to leaning on banks. The deal is heard underwritten for $150m by leads Santander, BBVA and Bank of Tokyo Mitsubishi. Another $100m is being targeted at other relationship banks. EDC is heard to have taken a $35m MLA ticket.