Category: Loans

Interbank, the Peruvian retail bank, is out with a $200m 3-year amortizing loan via Standard Chartered. The deal, now being shopped to MLAs, offers Libor plus 80bp in year one, 85bp in year two and 95bp in year three. Interbank is rated BB, and follows Banco de Credito del Peru, which recently raised $410m, upsized from $300m, at 70bp, 75bp and 85bp over Libor with the same structure. BCP was flexed up by 20bp from levels established last year prior to launch in early January.

Greenfield Holdings, a finance company set up by DuPont and Bunge in Brazil, has raised a $200m 2-year loan at Libor plus 100bp. The deal was led by Citi and Societe Generale. Greenfield provides agricultural businesses with financing. Proceeds will help build up the loan book for soybean farmers in Brazil, says a banker close to the deal.

Loan growth at Andean banks was strong across sectors in 2007 and should continue resilient in 2008, according to Moody’s. “Of some concern, however, is the high growth in riskier lending segments such as the consumer and middle market that may eventually lead to asset quality deterioration if not managed prudently,” says the agency. For highly dollarized countries such as Peru and Bolivia, credit risk for banks is heightened because of a natural mismatch of dollar loans to non-dollar earners. Colombian and Peruvian banks get an average rating of D+, while a D minus average rating was issued to Venezuelan and Bolivian institutions. Overall, Moody’s notes that a stable outlook for bank financial strength and deposit ratings is underpinned by improving macroeconomic conditions. “Banks that have relied on earnings from investment securities are shifting their emphasis towards more stable earnings sources such as lending and cash management,” says Moody’s.

Ten banks have signed MLA tickets on a $1.2bn 3-part loan that Usiminas is syndicating. The deal was launched to general syndication last week, and a meeting will be held Tuesday in Sao Paulo to extend invitations to Brazilian lenders. A 5-year trade piece pays 110bp over Libor and a 7-year offers 135bp over Libor. A $700m 2-year liquidity backup revolver pays Libor plus 75bp on any drawn portion, and 45% of that spread if undrawn. Pricing on the deal is widely seen as reflecting new market conditions and was apparently launched to leave no question in the minds of prospective lenders. Usiminas forced other deals in the market to flex up to comparable levels so they could remain competitive. Retail can choose between tickets of $75m, $50m and $25m. Half must be dedicated to the 2-year revolver while the rest can be split evenly between, or put entirely into, either the 5-year or the 7-year trades. Up front fees for the $75m tickets are 45bp for the 2-year, 50bp for the 5-year and 60bp for the 7-year. The $50m tickets offer 42.5bp, 45.0bp and 55.0bp, while the $25m tickets pay 40bp, 40bp and 50bp. HSBC is leading. MLAs include ABN AMRO, Tokyo Mitsubishi, BBVA, BNP, ING, JPMorgan, Mizuho, Santander, Sumitomo and SocGen.

In February 21 item “Hedge Fund Converts Network Loan into Equity” LatinFinance wants to make clear that Telecinco is investing alongside Quantek in CaribeVison. Telecinco is not is invested in the Quantek Opportunity Fund. And “Mexico’s Azcarraga” refers to the Mexican family Burillo Azcarraga, which is an investor in CaribeVision, not Quantek. A corrected version follows:

Hedge Fund Converts Network Loan into Equity
The BVI chartered Quantek Opportunity Fund has purchased 14% of Spanish language US network CaribeVision for $15m by converting a loan to an indirect equity stake. Quantek loaned $15.7m to the network last year and was attracted by the network’s growth potential. Other CaribeVision investors include Spain’s Telecinco and Mexico’s Burillo Azcarraga family. Bulltick Capital Markets structured the entrance of the hedge fund into the media company.

Brazil’s BicBanco, a midcap bank, is in the market with a $100m loan. Pricing on the deal was changed to Libor plus 110bp on a 1-year tranche and Libor plus 145bp on a two-year piece. Those margins were heard 30bp cheaper at launch. Sofisa, another mid-cap Brazilian bank recently closed a $185m A/B loan with the IFC that included a $30m 7-year piece at 187.5bp over Libor; a $120m 3-year bullet at 160bp over, and a $25m 5-year at Libor plus 175bp. Wachovia and Standard Chartered are leading the Bicbanco deal, while the IFC and Itau Europa led Sofisa.

Banks that participate in loan syndications are demanding juicier margins as their cost of deploying funds increases. Syndications that were launched in December have been the biggest victims of the changing market and have had to flex up pricing to draw in potential lenders. Both Cencosud and Banco de Credito del Peru have repriced their deals of $480m and $300m respectively by 15bp-20bp, depending on the credit and tenor. Those transactions are heard to have garnered interest from banks once the price was adjusted, say bankers on the deals. More recently, Brazil’s Unibanco went to retail at new pricing levels with a $250m facility that may include up to five tranches. A 2-year trade piece now pays 50bp over Libor; a 3-year trade offers 60bp over, and a 5-year trade is offering 105bp over. The deal also includes two working capital tranches that now pay 80bp over Libor for two years, and 115bp for five years. Pricing on the deal moved up10bp on the short-dated tenors and 30bp on the longer tranches. Banks considering participating on the Unibanco loan reportedly demanded better pricing when earlier this month Usiminas sprung a $1.2bn loan on the market that included a 5-year trade piece at 110bp. That forced other deals in the market to match with comparable pricing if they hoped to compete with the large, investment grade deal. Standard Chartered and WestLB are leading the Unibanco transaction, while HSBC is leading Usiminas. Many banks are also saving up to participate in an expected $50bn loan from Brazil’s Vale, which may be launched in the coming weeks at significantly richer margins.

Banks that participate in loan syndications are demanding juicier margins as their cost of deploying funds increases. Syndications that were launched in December have been the biggest victims of the changing market and have had to flex up pricing to draw in potential lenders. Both Cencosud and Banco de Credito del Peru have repriced their deals of $480m and $300m respectively by 15bp-20bp, depending on the credit and tenor. Those transactions are heard to have garnered interest from banks once the price was adjusted, say bankers on the deals. More recently, Brazil’s Unibanco went to retail at new pricing levels with a $250m facility that may include up to five tranches. A 2-year trade piece now pays 50bp over Libor; a 3-year trade offers 60bp over, and a 5-year trade is offering 105bp over. The deal also includes two working capital tranches that now pay 80bp over Libor for two years, and 115bp for five years. Pricing on the deal moved up10bp on the short-dated tenors and 30bp on the longer tranches. Banks considering participating on the Unibanco loan reportedly demanded better pricing when earlier this month Usiminas sprung a $1.2bn loan on the market that included a 5-year trade piece at 110bp. That forced other deals in the market to match with comparable pricing if they hoped to compete with the large, investment grade deal. Standard Chartered and WestLB are leading the Unibanco transaction, while HSBC is leading Usiminas. Many banks are also saving up to participate in an expected $50bn loan from Brazil’s Vale, which may be launched in the coming weeks at significantly richer margins.

Banks that participate in loan syndications are demanding juicier margins as their cost of deploying funds increases. Syndications that were launched in December have been the biggest victims of the changing market and have had to flex up pricing to draw in potential lenders. Both Cencosud and Banco de Credito del Peru have repriced their deals of $480m and $300m respectively by 15bp-20bp, depending on the credit and tenor. Those transactions are heard to have garnered interest from banks once the price was adjusted, say bankers on the deals. More recently, Brazil’s Unibanco went to retail at new pricing levels with a $250m facility that may include up to five tranches. A 2-year trade piece now pays 50bp over Libor; a 3-year trade offers 60bp over, and a 5-year trade is offering 105bp over. The deal also includes two working capital tranches that now pay 80bp over Libor for two years, and 115bp for five years. Pricing on the deal moved up10bp on the short-dated tenors and 30bp on the longer tranches. Banks considering participating on the Unibanco loan reportedly demanded better pricing when earlier this month Usiminas sprung a $1.2bn loan on the market that included a 5-year trade piece at 110bp. That forced other deals in the market to match with comparable pricing if they hoped to compete with the large, investment grade deal. Standard Chartered and WestLB are leading the Unibanco transaction, while HSBC is leading Usiminas. Many banks are also saving up to participate in an expected $50bn loan from Brazil’s Vale, which may be launched in the coming weeks at significantly richer margins.