San Antonio Internacional, the Bermuda-based privately held onshore drill servicer, has filed for an IPO on the Bovespa through a listing of BDRs via Itau BBA, the lead, Credit Suisse and Deutsche Bank. The company, whose assets are spread around Argentina, Mexico, Venezuela, Colombia, Bolivia, Ecuador and Brazil, is heard to be targeting an offering of well above $500m to be launched in September, say executives familiar with the company’s plans. San Antonio is rotating through the LatAm capital markets on a nonstop mission to solidify its capital structure. It just last month closed a $575m multi-part refinancing of a bridge loan, more than 80% of which carries spreads estimated at over 1,000bp over Libor. And it is currently arranging a pre-IPO loan with two of its underwriters that steps up to similarly lofty levels. The $100m 18-month financing will pay Libor plus 550bp in years 1-6, Libor plus 900bp in months 7-12 and Libor plus 1,500bp in months 13-18, according to the prospectus. Itau will take $75m while Deutsche will take $25m in the pre-IPO loan. San Antonio’s subsidiary Demeter also has a BRL50m loan due 2013 with Itau at DI plus 200bp. Bankers away from the deal claim Itau and Deutsche secured IPO mandates thanks in part to their lending capabilities. GP purchased San Antonio from Pride International for $1bn, $600m of which was debt. The company’s indebtedness stands at roughly $700m, according the prospectus, which also states adjusted Ebitda for 2007 was $251m. If San Antonio’s 2008 revenues stay on track with first half adjusted Ebitda of $124m, its current leverage ratio would be roughly 2.8x.
Category: Topics
Coeur d’Alene Appoints New Head
Idaho based silver and gold producer Coeur d’Alene Mines has appointed Humberto Rada president of its Bolivian subsidiary, Empresa Minera Manquiri, and of Coeur South America. Rada, president of Bolivia’s national mining association, was most recently general manager of Empresa Minera Inti Raymi, a Bolivian subsidiary of Newmont Mining, Coeur says. The company recently began operations at its new San Bartolome silver mine, located in Potosi, Bolivia, which is expected to produce 3.2m ounces of silver this year and approximately 9.0m ounces in 2009, the company adds.
Venezuela and Iran Cement Bolivia Deal
Bolivia has signed an agreement with Venezuela and Iran for the creation of a national cement company with an initial investment of $225m. Cementos de Bolivia is expected to produce 700,000 tons per year of cement and the first two plants will be located in the cities of Oruro and Potosi, the Bolivian government says.
ICA Bags Convention Center, Tarmac Projects
Mexican construction conglomerate ICA has won a bid for the construction of the San Luis Potosi convention center and revamping of tarmac at the Mexico City airport, for a total of MXP642.6m. The convention center will cost MXP428.6m and is expected to be executed in a year, while the tarmac project will cost MXP214.0m and will be ready in four months, ICA says. In July, a consortium composed of ICA, French company Alstom and local CICSA signed a contract with the transit authority of Mexico City to supply and install the electromechanical equipment for line 12 of the city’s metro system, at a cost of EUR330m.
Liverpool Eyes MXP Debt
Mexican retailer Liverpool is planning to sell up to MXP1bn in fixed or floating rate peso-denominated bonds, according to regulatory documents. It does not communicate the maturity or expected sale date. Proceeds will be used for working capital and general corporate purposes. Banamex is managing the sale. Liverpool last hit local markets in December, raising MXP4bn in 2014 bonds at TIIE plus 4bp via Banamex and HSBC.
Bladex Clinches 2-Year Funds
Panama-based supranational bank Bladex has closed a $150m 2-year facility priced at Libor plus 85bp. Santander and Standard Chartered led the process, which Bladex claims garnered commitments of $245m. A total of 13 banks participated in the loan and Bladex said in June that proceeds would go towards refinancing an August maturity. The bank is heard also planning an issue worth $50m denominated in PES from a $300m shelf. The debut issuance from the program was $40m equivalent in 7-year notes priced near the sovereign. A $300m equivalent MXP offer is also in the works. Bladex was in December upgraded to Baa2 by Moody’s. It also recently hired Merrill Lynch’s head of research Tulio Vera to run asset management.
IDB Backs up Amazonas Effluence
The IDB has approved a $154m loan to the Brazilian state of Amazonas to finance the construction of drainage, sewage, and solid waste collection and disposal systems in its capital, Manaus. The loan, which will be priced over Libor and will mature in 25 years with a 5-year grace period, will finance 70 percent of the total cost of the project. The facility complements another loan from the multilateral granted to the state in 2006 to begin sanitation and other water works in the Educandos/Quarenta watershed, which is located in the heart of Manaus.
S&P Gets Negative on Nemak
S&P has revised the rating outlook on Mexico’s Nemak to negative from stable. The agency is concerned by the high debt levels the auto parts maker maintains amid a deteriorating global auto industry. Its A+ national-scale rating could be lowered, it said, if Nemak’s debt-to-EBITDA ratio – now at 3.9x – remains above 3.3x for the next year, or if its operating cash flow becomes negative.
Caribbean Telecom Dials up Loan
The Caribbean subsidiary of UK-based Cable Wireless has landed $300m through a syndicated loan, say bankers familiar with the deal. The 3-year facility pays Libor plus 225bp. The deal is priced as a Caribbean credit, though the borrower benefits from the sponsorship of its UK parent, say the bankers. C&W has operations in 13 Caribbean jurisdictions including Jamaica, the Cayman Islands and Barbados. BNP Paribas and JPMorgan led the deal, much of the syndication for which is heard to have been run out of London. Elsewhere, Digicel, one of the largest telecoms in the Caribbean, was heard testing market appetite for a loan. Sellsiders close to the company, however, deny the company is in the market for new funds.
Trinidad’s RBTT Eyes Jamaica Highway Financing
RBTT is eyeing the expansion of Jamaica’s Highway 2000 that should come to the market in 4 to 5 months, according to Christopher Mack, vice president of capital markets for RBTT. The $300m deal will be a combination of a refinancing of bonds issued to fund the first phase of the project and new debt, Mack says. RBTT was the lead bank in the placement of a February 2004 $130m bond issue that financed the first phase of the highway, Mack adds. RBTT was acquired by Canada’s RBC in June for $2.2bn.