Category: M&A

Argentine telecom operator GC Impsat, which is being acquired by Global Crossing, priced $225 million in 9.875% bonds (B3/B-). The offering, originally expected to be $200 million in the 10% range was priced at par. Credit Suisse was bookrunner, with Deutsche bank as joint-lead. Since the funds are destined for an acquisition, expected to close as late as April, they will be put into escrow and there is a put penalty in case the deal doesn’t close.

Argentine satellite company GC Impsat will price today $225 million in 9.875% 10-year bonds rated B3/B-, to help pay for its acquisition by Global Crossing. The offering launched Wednesday, upsized from $200 million, and the price was trimmed from an initial 10%, according to a banker close to the deal. Credit Suisse is bookrunner, with Deutsche Bank as joint-lead. It was on the road last week.

Guatemala’s banking sector continues to consolidate with the acquisition by Banco Reformador (Bancor), the country’s fifth-largest bank, of Banco SCI. Bancor has $800 million in assets; Banco SCI has $175 million. This is the third merger in the sector since the beginning of the year. First was the acquisition by G&T Continental of Banex-Figsa, then came Banco Agromercantil, which bought Banco Corporativo last week. Guatemala’s banking sector has suffered recently from two bank failures – those of Bancafe and Banco de Comercio, in October and January.

QBE the Americas, a subsidiary of Australian insurer QBE Insurance Group, has entered the Mexican market with the acquisition of 100% of Cumbre Seguros, a specialized Mexican insurer in Mexico. The purchase is part of a strategy to enter Latin America’s five largest markets: Argentina, Brazil, Colombia, Mexico and Chile, said the Australian firm. QBE expects the transaction, which is subject to regulatory approval, to close during the second quarter of the year. Cumbre Seguros writes commercial property and casualty insurance products for mid- and small-sized businesses and had gross premiums of $58 million last year, according to QBE.

Colombia’s financial regulator has approved the acquisition by local bank Davivienda of Bancafe, which the former bought from the government at auction for $927 million last October. The acquisition will be funded by around $115 million from the issue of new shares to existing shareholders; a $75 million capital injection from the IFC; $165 million of subordinated debt, of which $65 million will be taken by the IFC; $250 million syndicated credit, as well as the bank’s own resources.

Mexican mortgage lender Metrofinanciera is in talks to buy local finance company Crédito y Casa, according to Reuters. If the acquisition goes ahead it will make Monterrey-based Metrofinanciera the largest Sofol in the country, moving ahead of Hipotecaria La Casita. Reports have been swirling since last year of a merger between the two entities with a price of around $180 million suggested.

The International Finance Corporation (IFC), the private sector arm of the World Bank, has granted Davivienda a $240 million financing package to support the Colombian bank’s acquisition of state-owned bank Bancafé and to strengthen its capital base. The financing comprises a $75 million direct equity investment and $165 million in subordinated debt. The $75 million injection of capital into Davivienda takes the IFC’s stake in the Colombian bank to 9%. Davivienda bid $927 million last October to win control of state-owned Bancafé.

Mexican financial group Banorte has closed its acquisition of US remittances company UniTeller Holdings for $20 million. The acquisition is part of Banorte’s strategy to target clients in the US, who sent back $20 billion in remittances to Mexico in 2005. Last January, Banorte announced it was to buy 70% of Texas-based Inter National Bank for $259 million.