Category: Loans

Grupo Maeda, a large Brazilian producer of cotton and soybeans, has signed a $20m 3-year loan at a margin of 300bp over Libor. Natixis and two hedge funds participated in this Standard Bank-led deal. The pre-export financing is backed by a pledge on Maeda’s soybean production and exports. Standard Bank also has a mortgage on Maeda property equalling $30m, which will decrease by a third each year. A European surveillance company will monitor Maeda’s soybean fields, making sure productivity levels meet contract terms, explains Regis Carvalho, vice president, LatAm structured finance at Standard Bank in New York. While the appreciating real still concerns exporters, soy prices, which hit an 11-week high in mid May, are improving, Carvalho says. The deal was oversubscribed, says Carvalho.

Ashmore Energy had to flex up pricing on a $1 billion seven-year term loan B, following market resistance. It was originally floated at Libor plus 275 basis points, but raised to 300 basis points after pushback from participants. Price flex is rare in the LatAm bank market and has typically involved downward revisions owing to excess liquidity. The move higher by Ashmore suggests that the days of “anything goes” may soon be over for Latin borrowers. The $1.5 billion loan is being taken out to pay for the acquisition of Prisma and should close early next week. The financing also includes a $500 million revolver. Credit Suisse and JPMorgan are leading, with Citi, Lehman, Deutsche Bank and Goldman Sachs also participating.

Mexico’s Dine, the real estate firm, has launched a $130 million dual-tranche loan. It includes a $100 million amortizing seven-year at 175 basis points over Libor and a $30 million three-year revolver at 100 basis points. Citi is joint books with Inbursa. Proceeds are to repay parent DESC as part of a spin off.

Jamaica-based telecom Digicel has launched an $850 million five-year amortizing loan for the operating company at 250 basis points over Libor. Proceeds are partly to refinance $600 million in debt. Citi is sole lead.

Mexico’s Axtel is raising $205 million in the bank market to fund its acquisition of Avantel. The deal through Citigroup is priced at 187.5bp over Libor, on a leverage grid. It is a five-year with 36-months’ grace, said bankers considering participating. Comerica, HSBC, Scotia and Standard Bank have signed on as MLAs and the commitment deadline is February 8.

Venezuelan oil producer PDVSA is heard in the market with a $1 billion one-year revolver through BNP Paribas, which has an option to renew. The margin is said to be 115bp over Libor, not enough for some bankers looking at it, given the political situation. The deal was launched in December, before the nationalization plan announced by Chavez, and apparently met resistance. ABN Amro, Calyon and Citigroup signed up, according to bankers not on the deal. The rare Venezuelan state-owned credit is cash rich and has a history of meeting its debt payments.

Endesa Chile, the local unit of the Spanish utility, has secured a three-year revolving credit for $200 million from a group of four banks. Endesa will pay interest of Libor plus 0.25%. The banks to syndicate the loan in January are ABN AMRO, Banco Santander, BNP Paribas and Instituto de Crédito Oficial (ICO). The loan offers Endesa “greater financial flexibility and liquidity”, according to the company’s website.

Colombia has issued $400 million 10-year debt at 180bp over three-month Libor. The issue will mature on 16 November 2015. The issue was rated Ba2 by Moody’s Investors Service and BB by Standard & Poor’s and was being arranged by JP Morgan.