Category: Mexico

The Ecuadorean government has rejected America Movil’s $307m offer to maintain its mobile phone concession in the Andean country, according to Senatel, the country’s telecoms regulator. The Mexico-based firm, which operates in Ecuador through its Porta subsidiary, will continue to do so until August of this year, when the concession expires, Senatel says. Telefonica’s Movistar pledged $200m to maintain its concession in Ecuador, where it has 26% market share, the regulator says. Porta controls almost 70% of the market. A spokeswoman at America Movil declines to comment, adding that the company has not being officially notified of the measure.

The Export-Import bank of Korea (Kexim) has retapped for MXP1.1bn its 8.61% of 2017 Mexican peso-denominated bonds. An MXP800m tranche priced at 99.23 to yield 8.73%. It follows a MXP300m tranche that priced last week at 98.16 to yield 8.90%. The transaction was rated A+ by Fitch. Merrill Lynch managed the sale, a retap of an MXP1bn offer done in October. Kexim also placed in January MXP1.2bn in 2013 floaters at TIIE plus 30bp.

Mexico-based private equity shop Nexxus Capital has acquired a 60% stake in private education provider Harmon Hall Holding. The purchase, made through the Nexxus Capital private equity fund III, cost between $25m-$30m, Roberto Terrazas, a director at the fund, tells LatinFinance. Harmon Hall specializes in teaching English in Mexico, with 105 language schools around the country. Nexxus focuses on sectors including health, education, tourism, services and housing, Terrazas adds.

Fitch has upgraded the national scale ratings of Mexican glassmaker Vitro to BBB minus (mex) from BB+(mex). The agency affirms Vitro’s foreign currency debt ratings at B, and its senior unsecured notes due 2012, 2013 and 2017 at B+. The outlook is stable for all ratings, which cover approximately $1.2bn in debt. Vitro’s ratings reflect the company’s improved financial profile and capital structure after a refinancing process completed at the beginning of 2007. That consisted of a sale of $1bn in senior unsecured notes in two tranches: $300m and $700m with final maturities of 2012 and 2017. With this deal, Vitro mitigates short-term refinancing and liquidity risks, while also eliminating structural subordination following the take out of secured operating subsidiary debt, says Fitch.

Power generator InterGen has launched a $310m debt package to support its purchase of two plants in Mexico from Canadian utility TransAlta. A $210m 14-year term loan is priced at 135bp stepping up to 160bp over the life of the loan, as is a $100m 5-year revolver. The Massachusetts-based generator bought a 511MW portfolio consisting of the 252MW Campeche facility at Palizada in the Yucatan Peninsula and 259MW Chihuahua in Juarez. Both have 25-year PPAs with state utility CFE. Calyon, WestLB and Export Development Canada are the MLAs.

Alberto Baz has returned as CFO of Sare Holding has after a one-year leave of absence, the Mexican homebuilder said. Baz, who previously served as CFO for five years, will resume his duties May 1. Fernando Solis, who served as interim CFO during Baz’s personal leave of absence, will lead the Sare’s new institutional relations department.