Chilean financial services company Factorline yesterday began a roadshow to market a bond issue of up to CLP50bn ($105m) or its equivalent in UF, says a banker on the deal. The roadshow will end in Chile next Friday. Factorline has registered 3 tranches, of which only 1 or 2 will likely be selected depending on investor demand, the banker explains. A CLP25bn tranche has a term of 5-years and a 5.0% coupon. A 7-year UF2.3m tranche has a 3.5% coupon and 10-year UF2.3m tranche has a 3.8% coupon. Proceeds from the deal, rated A on a national scale, will be used to refinance debt and for working capital. The issue should take place during the week of April 11, the banker says. Banco de Chile is managing the sale. In August, Factorline issued CLP20bn in 2015 local bonds through BBVA priced to yield 6.88%, or 129bp over the government benchmark.
Category: Chile
Chilean Retail Comes Off Boil
Chilean retailers have unveiled aggressive expansion plans for 2011. Bottom line growth and stock performance are not expected to hit last year’s heady pace.
Chilean DCM Overcomes Intervention
Despite central bank intervention that pushed local rates higher, Chile’s local corporate debt market should remain active. Bankers expect similar volume to 2010.
André Esteves: The Humble Billionaire
André Esteves is deploying simple concepts and hard work to take BTG Pactual global. He inspires a new generation of homegrown financial entrepreneurs.
Oops, They Did it Again
A hearty new equity issuance pipeline is building in LatAm, though, as at the beginning of 2010, friction between buyers and sellers threatened to poison the punch.
M&A Sees More For Less
In the year through February 23, a total of 212 M&A deals worth $18.7 billion was reported, according to Dealogic.
Banco de Chile Raises $180m
Banco de Chile has priced a $180m equivalent equity follow-on, at a 1.6% discount to its Wednesday closing price. The bank priced 1.4bn shares at CLP62, for a total of CLP86.8bn ($180m), versus a Wednesday close of CLP63.01. About 35% went to Chilean pension funds, 25% to international institutions, 15% to Chilean institutions, 15% to retail and 10% to other investors. In a research report, IMTrust had said a fair price for the deal would be CLP64.20, and maintains a CLP74.40 12-month target. The transaction comes as part of a 3.4bn share shelf approved at the beginning of the year, and follows 2 weeks of investor meetings. Proceeds are marked for general corporate purposes, mainly growing lending operations. BanChile and LarrainVial managed the sale. Banco de Chile shares closed at CLP65.70 Thursday, up 4.3%.
CAP Seeks Loan Extension
Chile’s CAP, the steel and iron ore producer, is looking to extend a 3-year loan into a 5-year facility, according to a banker with knowledge of the transaction. CAP is also looking to increase the size of the facility to $200m from $150m. Bank of Tokyo Mitsubishi and HSBC are joint bookrunners on the deal. The company held bank meetings on Friday in New York. CAP is looking to close the transaction by April.
GeoPark Selling Stake for Rich Price
LatAm oil and gas company GeoPark says it plans to sell a 10% stake of its Chile unit to Korea’s LG Group for $70m. “From a market standpoint, the transaction implies an equity valuation for GeoPark of $700m, which compares to a current capitalization of $448m,” says Celfin. “We believe that the transaction is positive for GeoPark from many angles. From a financial standpoint, the firm will raise $70m, proceeds that will be channeled for tactical purposes including acquisitions in the region,” the firm adds. The deal is expected to close in Q2 2011. In a separate deal, GeoPark reached an agreement to invest up to $10m in the drilling of an exploration well on the Sholkara prospect in the LGI-operated Block 8 in Kazakhstan, which would give GeoPark a 25% participating interest in the block.
UBS Takes 40% of Jumbo
Chilean retailer Cencosud says UBS has agreed to acquire a 38.6% stake in its Argentina unit Jumbo Supermarkets for $442m plus an undisclosed fee over the next 2 years. UBS will buy the stake from PE funds Capital International, GEM, Palermo Argentina, SCF Chile Holdings, BSSF Chile Holdings and Pinebridge and multilateral bank IFC. The sellers had determined they would exercise their option to sell the stake to Cencosud in October, according to a regulatory filing. Celfin says the move is a positive one for Cencosud as it removes uncertainty surrounding the value of the stake and whether any of the sellers would attempt to sell them in the open market.