Grupo Alfa auto parts manufacturer Tenedora Nemak has closed a $465m 2018 senior unsecured loan, according to people following the process. The price is tied to a leverage grid, with the borrower paying Libor+150bp at less than 2.0x, 175bp at 2.0x-2.5x, 200bp at 2.5x-3.0x and 225bp at more than 3.0x. BBVA Bancomer, Citi, HSBC Mexico, Banco Santander and Export Development Canada participated in the deal, at $93m each. Citi was the admin agent, and was a joint lead arranger and joint bookrunner along with BBVA, HSBC and Santander. The Mexican is a producer of aluminum engine blocks, cylinder heads and transmission components.
Category: Regions
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Sigma Pitching Lenders
Mexico’s Sigma Alimentos is planning a bank meeting Tuesday for a $1bn senior unsecured term loan facility, LatinFinance understands. The 5-year loan comes at Libor+125bp and is tied to a leverage grid. Bank of Tokyo-Mitsubishi is leading. The Grupo Alfa food products subsidiary is making a EUR675m ($908m) bid for European meat company Campofrio Food Group. It is also planning an IPO with Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe, likely happening in 2014.
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China Helps Fund Argie Trains
Argentina has signed a $2.47bn financing package with China Machinery Engineering (CMEC) to revamp the Belgrano-Cargas freight train line, the country’s Interior Ministry says. Half of the package is a 15-year loan with China Development Bank, at 7.1% interest. The proceeds will go to the purchase of new railroad cars, the repair of half the existing fleet and the laying of new rails. The initial contract for China Machinery Engineering to revamp the train line was signed in 2010.
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Electrical Parts Maker Prints MXP Bond
Mexican electrical parts maker Xignux has priced a MXP1.5bn ($114m) domestic bond, according to a person familiar with the transaction. The 10-year fixed-rate bond priced at 8.96% or Mbonos+250bp, flat to guidance, and received MXP2.5bn in demand. Proceeds from the transaction, rated AA on a national scale, will be used to repay debt. The funds will also be used for other corporate purposes. Banamex managed the sale. It was the first local bond for Xignux since a MXP1.4bn 2015 in June 2008.
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HSBC Mexico Makes Rare DCM Visit
HSBC has issued MXP5bn ($381m) in fixed and floating-rate domestic bonds, according to people familiar with the terms. The Mexican arm of HSBC Holdings priced a MXP2.7bn 2023 bond at 8.08% or Mbonos+161bp, in line with 160bp area guidance. A MXP2.3bn 2018 bond priced at TIIE+30bp, in line with TIIE+30-35bp guidance. Total demand topped 2.1x, with Afores participating in the fixed-rate portion and treasuries, mutual funds, retail and other investor types participating in the FRN. Proceeds will help fund the bank’s portfolio. HSBC’s own capital markets arm managed the transaction, rated AAA on a national scale. The bank’s most recent previous domestic offering was a MXP4.18bn subordinated bond sale in June 2009.
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ISA Names Finance Official
Colombia’s ISA has named Carlos Alberto Rodriguez as vp of corporate finance, effective monday, it says. He returns to ISA from Grupo Inversiones Mundial to replace Camilo Barco, who left the company earlier this year and joined BBVA. The move comes as part of a new organizational structure for ISA.
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Dominican Banks Merge
Centro Financiero BHD and el Grupo Financiero Leon have agreed to merge, the two Dominican financial institutions say, bringing all operations under an entity to be known as Centro Financiero BHD Leon. At the operating level, the deal creates Banco BHD Leon, to be the country’s second largest bank with DOP182bn ($4.29bn) in assets. The two privately-held entities were mum on the valuation assigned to each side, and do not indicate what size of a minority stake in the combined entity Leon shareholders will have. The pair also notes that they are in the process of buying out the stake held by Spain’s Sabadell, but do not discuss the price involved. Sabadell held 20% of BHD prior to the Leon transaction, according to BHD’s website. The parties did not respond Thursday to request for additional details. BHD president Luis Molina is to become president of BHD Leon group’s board, with Leon president Carlos Guillermo Leon as vice president. Molina will also be president of Banco BHD Leon, with current Banco BHD CEO Steven Puig as CEO. The transaction awaits various approvals. Lazard advised BHD, and Bank of America Merrill Lynch ran a sale process on behalf of Leon. The sale follows the Leon family’s $1.24bn sale of 51% of its CND brewery to AB InBev last year.
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Chilean Raises $57m in JPY Placement
Banco de Chile has raised JPY5.8bn ($57m) through a private placement in the Japanese bond market, according to people familiar with the transaction. Issued on the back of reverse inquiry, the 2019 bond priced at par with a 1.03% coupon, to yield mid-swaps plus 65bp. Citi was sole lead. The Aa3/A+ Chilean raised a JPY11.1bn ($112m) euroyen last month in its first-ever deal in the Japanese bond market, which came at MS+50bp.
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EPM Generates Healthy Bid
Colombia’s Empresas Publicas de Medellin (EPM) has sold COP367bn ($188m) in domestic bonds, it says, getting more than COP925bn demand. The utility sold COP42bn in 2018 bonds at IPC+3.82%, COP96bn in 2023s at IPC+4.52% and COP229bn in 2033s at IPC+5.03%. EPM plans to use proceeds from the sale for investments, including in the $5.3bn Ituango hydroelectric generation project expected online in 2018. Credicorp and Corredores Asociados led the deal, rated AAA on a national scale. More Colombian issuance is on the way before the end of the year, with Banco Davivienda and generator Celsia scheduled to price next week.
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Trinidad Plans DCM Visit
Trinidad and Tobago is preparing to meet bond investors ahead of what would be its first international bond in more than six years, according to people following the matter. The A/Baa1 sovereign will visit accounts in London, New York, Los Angeles and Boston Friday through Tuesday. A deal would follow if market conditions permit. Citi is managing the process. Trinidad’s last visit to the DCM was a $150m 2027 offering in 2007, according to Dealogic. Eric James, permanent secretary in the finance ministry, told LatinFinance in March that Trinidad was considering a $500m bond this year in order to reestablish a presence in the markets, despite not being an immediate need of new funds. Elsewhere in the DCM, Miner Hochschild was due to finish a roadshow Wednesday, and AES Gener was due to finish a marketing effort by today.