Embotelladora Andina has picked Jose Luis Solorzano as its next CEO, it says, to replace Abel Bouchon when he leaves March 31, 2014. Solorzano is CEO of the Chilean bottler’s Embotelladora del Atlantico subsidiary in Argentina.
Category: Chile
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Latam Launches Rights Offer
Latam Airlines has opened the rights offering period for an equity capital raise, it says, running through December 19. The airline has set a price of $15.17 per share, meaning a total of $963m for the 63.5m shares on offer. The shares closed at CLP8,306 ($15.88) Wednesday, and ADR at $15.99. Latam arrived at the price based on a weighted average of transactions from the previous eight days, minus a 7.5% discount. The airline is raising funds for fleet enhancement and other purposes. JPMorgan is global coordinator and BTG Pactual and Credicorp are joint bookrunners.
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Molymet Sets Price
Chile’s Molymet has set the price for a $100m equity capital raise, it says. The metals processor plans to offer 5.9m shares at $17.00 each. The shares closed at CLP7,800 ($14.91) each Wednesday.
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Chilean Central Bank Cuts Rates
A rising dollar and slowing domestic demand were factors in the Central Bank of Chile’s decision to cut interest rates by 25bp, to 4.5%, on Tuesday. The bank cited a “gradual” recovery in the US, and moderate growth in emerging markets, including in Chile, and a depreciating peso in its decision. The move followed a surprise rate cut — the first in over 18 months — of 25bp at the bank’s October meeting.
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BTG Chile Swaps CEOs
Alejandro Montero has been appointed CEO of BTG Pactual Chile, the bank says. He replaces Juan Andres Camus, who moves to become chairman of the board.
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Alsacia Swaps CEOs
Jose Ferrer has been named CEO of Chilean bus transportation provider Inversiones Alsacia, the company says. He replaces Ruben Alvarado. Alsacia had its ratings cut last month to CC/Caa2, on a heightened risk of default. Alsacia has been hurt by a new concession contract that is less favorable than its previous agreement, resulting in higher costs and strained financial metrics. Holders granted Alsacia covenant debt service and account waivers last month.
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Bridge in Hand, CFR Makes Adcock Bid
Chile’s CFR Pharmaceuticals has formally bid ZAR12.6bn ($1.2bn) for South African drug maker Adcock Ingram, and has secured a $600m bridge loan to help, it says. CFR has support of shareholders holding 45% of Adcock, and claims letters of support from another 7.5%. It needs to reach 75% for success, and a pension fund holding 19% has come out against the deal. It would pay cash for 51.0%-64.2% of Adcock, and settle the rest with new CFR shares. The ZAR73.51 per share offer price represents a premium to Friday’s ZAR69.30 close. CFR says it has a $600m bridge loan ready to go from BBVA, Santander Chile, Bancolombia and Bank of America. Credit Suisse is advising CFR, with IMTrust providing an evaluation of Adcock shares. Deutsche Bank is advising Adcock, with JPMorgan providing a fairness opinion. The deal is expected to generate revenue and cost synergies of up to $440m, would see Adcock delisted from Johannesburg, where CFR would have a secondary listing. In addition to the bridge funds, CFR is preparing a $750m equity capital raise.
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Banco de Chile Makes Japan Debut
Banco de Chile has raised JPY11.1bn ($112m) through a private placement in the Japanese bond market, it says, its first such transaction. The 2016 bond priced at par with a 0.74% coupon, or mid-swaps plus 50bp. Citi was sole lead on the Aa3/A+ rated deal. “The key thing is that this transaction was well priced for the Japanese market and versus its dollar curve,” says a banker away from the deal. Pricing attractively versus the issuer’s peso curve was tricky, considering the issuer lacks a strong USD benchmark – having last issued in USD in 2006, according to Dealogic. So far Banco de Chile has issued $1.12bn in cross-border bonds in 2013, it says, highlighting it will continue to evaluate new markets. It most recently raised CHF175m ($191m) in Switzerland. Banco de Chile follows Banco del Estado de Chile into the Japanese market, with the latter becoming the country’s first yen-denominated issuer in June through a JPY24bn sale. LatAm issuers have raised $1.18bn-equivalent from three deals so far this year, according to Dealogic data. This compares to $1.33bn from two in the corresponding period in 2012, which is also 2012’s full-year total.
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Chilean Considers Local Sale
Chilean private hospital Clinica Las Condes can issue up to UF1m ($45m) in bonds in the domestic bond market, according to regulatory filings. It can choose from three series, each up to UF1m. Two are 2034 bonds and the third is 2038 bonds, according to the filing.
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Grupo Security Readies UF Sale
Chile’s Grupo Security is planning to sell up to UF5m ($223m) in domestic bonds, it says. The financial services company’s 10-year bonds have a 3.6% coupon, and are rated A minus/A minus on a national scale. The bank is managing the sale itself. Security last tapped the market in September, selling UF3m in 4.0% 2038 domestic bonds to yield 4.04%, or government bonds plus 154bp, through BCI and IMTrust.