Syndication of a $120m two-tranche loan for Mexican low-end retailer Waldo’s is moving along slowly but surely, according to bankers close to the transaction. The book on the facility, which has a 5-year $70m senior piece paying 400bp over Libor and a 7-year $50m junior portion paying 650bp over, is heard to be more than halfway filled, says a person close to the deal. Bankers away from the transaction were curious to hear how it was shaping up, given the fact it is so highly levered, involves a second lien, and proceeds are being used to pay private equity sponsors a return on their investment. Despite these features, the loan does carry covenants and sets the borrower on a declining leverage structure, says an executive involved in the financing. A vague target date of late August has been assigned. Citi is leading.
Category: Loans
Pemex Seeks Tighter Terms on $2.5bn Loans
Pemex is seeking to reduce pricing on two $1.25bn bullet loans, one of three years and one of five years, to Libor plus 20bp and Libor plus 25bp respectively, says a banker not on the deal. Barclays, Calyon and BBVA are leading the process, the first two of which were leads on the existing facilities. The state-owned oil company held a bank meeting Monday and will hold another today in Mexico City.
Peru’s Pesquera Diamante Launches $165m Financing
Peruvian fishing company Pesquera Diamante has launched a $165m 5-year loan at Libor plus 350bp, via Citi. The deal is being shopped to MLAs. The proceeds are being used to fund acquisitions, much in the same way another fishing company, Copeinca, used the proceeds of a recent $195m Libor plus 350bp loan, to scoop up smaller competitors. Executives close to Diamante, however, say the use of proceeds is very clearly delineated in this deal, unlike their competitor’s financing, which changed course midstream thanks to a series of new purchases, preventing a full syndication of the loan despite earlier plans to do so.
Mexichem Lines Up Lead Banks
Mexichem, which produces and exports petrochemicals, has lined up its lead bookrunners for a $595m 5-year term loan at Libor plus 87.5bp, and is now looking for three to four MLAs, according to bankers away from the deal. Citi has sole lead books and BofA and ABN AMRO are lead bookrunners, though without league table credit.
Termoeléctrica del Golfo Powers Up Plant Financing
Mexico’s Termoeléctrica del Golfo has launched a $245m 15-year power plant financing at Libor plus 87.5bp, according to bankers away from the deal. The margin is based on a pricing grid that rises to125bp. The company reportedly has an offtake agreement whereby Cemex has agreed to purchase power generated from the plant. BNP Paribas has sole books.
Delba, Schahin Ready Platform Financings
Offshore drilling platform concessionaire Delba Marítima, based in Rio, has launched a $488m Petrobras platform financing at Libor plus 237.5bp in the 3-year construction period and Libor plus 250bp in the 7-year post construction period. Abu Dhabi-based SPM is building the platform. The IDB is heard to be actively considering participating in an A-tranche loan, according to a banker on the deal. WestLB is leading and has secured four MLAs. Grupo Schahin is also going out to general syndication to raise $800m for two Petrobras platforms that will pay 237.5bp over Libor in the 3-year construction period and 162.5bp-200bp in the post construction period, depending on performance availability metrics. Bank meetings are being held in São Paulo and New York. The deal is joint-led by Mizuho, WestLB, Standard Chartered and Unicredit.
Mexichem Targets up to $600m in 5-Year Loan
Mexichem, a developer and exporter of chemicals and petrochemicals, is raising just under $600m in a 5-year term loan. The facility, which pays Libor plus 87.5bp, is currently being marketed to MLAs. Lead arrangers are being offered $90m portions, according to market participants. Citi is leading.
Investors More Interested in Microfinance: S&P
Microfinance is increasingly on investors’ radar screens and S&P is raising coverage of this sector, which is expected to yield deal flow in the Latin capital markets. “The lack of consistent metrics for analyzing MFIs [microfinance institutions] has hindered investment at a time when microfinance is growing at a significant rate,” says Cynthia Stone, managing director and chair of S&P’s EM council. “And despite the level of interest, mainstream investors need standard metrics before they can invest in this particular sector.” S&P says its new report on the sector provides needed recommendations for a rating methodology that can be used globally and consistently to rate MFIs within countries, across borders, and across asset classes. In May, S&P graded the first publicly rated microfinance CDO and it expects to rate an additional two to three transactions in the months ahead, with issuance levels potentially reaching $500m by the end of 2007. “As the existing microfinance institutions also become adept at handling this new inflow of funding, and more MFIs enter the market, securitization volumes could reach between $1bn-$3bn annually over the next decade,” says S&P.
Copeinca Halts Syndication
Lead banks participating in a $185m 5-year loan at 350bp over Libor to Peruvian fishing company Copeinca, have decided to keep the entire sum on their books because of a series of acquisitions the company is considering which would complicate the syndication. Lead arranger Credit Suisse, and MLAs BBVA, WestLB and Glitnir, the Icelandic commercial bank, have formed a club and will not be syndicating out the loans until Copeinca’s M&A activity quiets down. Bankers who received invitations for general syndication expressed annoyance at the sudden change of plans, which left them without a piece of the attractively priced loan. More financing from Copeinca may come further down the road, say bankers.
Copeinca Fishes For $185m Loan
Copeinca, a fishery based in Lima, is in the process of raising a $185m 5-year loan for acquisitions. The deal, which is heard paying 350bp over Libor, is going out to general syndication this week. The company, listed its shares on the Oslo stock exchange in December, and is using the funds to make acquisitions in the Peruvian fishing industry. Credit Suisse is leading.