The loan financing for Ternium’s acquisition of IMSA, the Mexican steel products maker, is headed to its final stages, and a complete lineup of participants is expected by the end of next week. Most of the financing is being raised by the target, with less than 10% being raised by Ternium. Ternium will borrow a maximum of $340m via a 5-year term loan at Libor plus 100bp, though that amount is likely to decrease and go undrawn. Hylsa and IMSA will together borrow $3.749bn across two tranches. A 4.5-year amortizing tranche will pay Libor plus 65bp if the leverage ratio stays between 3.00X-3.50X, and Libor plus 75bp if it moves up to 3.75X. Hylsa will take out $1.97bn and IMSA 777.5bn for the amortizer. A second, 5-year bullet tranche will pay Libor plus 77.5bp or Libor plus 80bp using the same leverage grid. As in the case of the amortizer, Hylsa will borrow $1.97bn and IMSA 777.5bn for the bullet tranche, according to bankers on the deal. Lead banks Citi and Calyon have lined up seven MLAs: ABN AMRO, BBVA, BNP, Unicredit, Deutsche Bank, JPMorgan, and San Paolo Intesa. General syndication is underway and books are expected to close by the end of next week.
Category: M&A
Nemak To Refinance Bridges
Mexican autoparts maker Nemak is considering raising as much as $500m in the bank market to refinance bridge loans it took out for a series of cross border acquisitions, according to bankers away from the deal. In May the company agreed to buy Castech from Mexico’s Grupo Industrial Saltillo for $136m and in March it said it would pay $414 plus some equity for TK Aluminum. BBVA and Citi have been tapped to lead.
Latin American Banking Leadership Council
During the IDB and IMF annual meetings, LatinFinance gathers board members of the Latin American Banking Leadership Council for an afternoon to foster a greater level of discussion and interaction between senior banking executives active in the region.
Brasil: Desempenho Extraordinário & Novas Classes de Ativos
O rápido crescimento econômico do Brasil e a inovação financeira associada estão gerando uma série de novos ativos, tanto financeiros – derivativos, títulos lastreados em ativos – como reais – commodities, bio-combustível e agronegócio. Por sua vez, isso está fomentando o crescimento da quantidade e do tipo de investidores internos, inclusive o rápido crescimento dos fundos hedge e das operações de private equity locais, bem como a maior participação de todos os tipos de investidores internacionais.
Gerdau Rolls Into Asia
Brazilian steelmaker Gerdau has taken its first step into Asia with the acquisition of a 45% stake in India’s SJK Steel Plant. In a note to regulators on Friday, the company said that it has agreed to pay around $71m for the shareholding. The plant has an production capacity of around 275,000 metric tons.
Copeinca to Boost Float with $130m Equity Raise
Oslo-listed Peruvian fishing company Copeinca is raising at least 780m Norwegian kroner ($130m) via a marketed private placement of shares this week to help pay for the acquisition of Piangesa, another fishing company. The company’s officials are on roadshow in New York and Europe, including stops in Frankfurt, London and Oslo. The deal will up the company’s float by 26% to 58.5m shares, from 46.5m, in a transaction that is dilutive to existing shareholders. The company recently issued 6.2m shares to help pay for another acquisition and raised a $185m loan at Libor plus 350bp via Credit Suisse and three other banks for acquisitions and general purposes. The private placement of shares will close Thursday, and is being managed by Glitnir Securities and SEB Enskilda, two Norwegian firms.
FirstCaribbean, RBTT Heard Working on Price
The acquisition of RBTT by FirstCaribbean is apparently in the works, but Caribbean-based bankers say that the two financial institutions are still hammering out a price. According to people close to the banks, the combined entity would have assets of almost $20 billion, making it the biggest in the region. The retail and corporate/investment banking operations are seen as complementary and forming a regional banking powerhouse. Meanwhile, RBTT is heard working on a variety of corporate finance deals, including bi-lateral loans in Venezuela. Officials at both banks did not answer requests for comment on the likely merger. FirstCaribbean is owned by CIBC.
The 7th Euromoney/LatinFinance Caribbean Investment Forum
Regional rainmakers will be joined by a strong international contingent of direct and portfolio investors, many of whom will be keen to know whether the Caribbean’s continued economic uptick is sustainable, particularly in light of burgeoning levels of public debt.
Cencosud Eyes Unimarc Assets
Chilean retailer Cencosud says it is evaluating the acquisition of some Unimarc assets. In a filing with the country’s securities market regulator, SVS, Cencosud said it was interested in some of the assets of the local supermarket chain but had reached no agreement as yet with Unimarc.
Satmex Rejects Offers
Mexican satellite company Satélites Mexicanos (SatMex) says it has rejected all recent offers of acquisition, including one recently revealed from French satellite operator Eutelsat, saying that all have “failed to meet its ojectives”. Local companies Teléfonos de México and Grupo Televisa had earlier expressed an interest in bidding, as had European conglomerate SES Global. Last year SatMex successfully restructured to position itself as a target in the consolidating satellite communications sector. It appointed Morgan Stanley to advise on the sale to a strategic buyer. The restructuring, which has been praised for its fair treatment of foreign creditors, left 78% of the company’s equity in the hands of the debt holders. The remaining 22% is held by the Mexican government (20%) and jointly by local telco Principa and US operator Loral (2%).