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.
Category: Loans
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.
Brazil’s Maeda Gets $20m 3-Year Loan
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.
High Return, Low Risk
Microfinance institutions have an array of funding sources available, all of which should appeal to investors, says Vikram Gandhi, global head of Credit Suisse’s financial institutions banking group.
Ashmore Flexes Up Price On $1.5 Billion Loan
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.
Digicel Launches Opco Loan
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.
Dine Launches $130 Million Dual Tranche Loan
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.