Mexico’s Axtel has launched an exchange offer to holders of its 7.625% 2017 and 9.000% 2019 bonds, it says, in order to replace the debt with 2020 step-up bonds. The telecom is offering holders of the $133m outstanding in 2017s $985 per $1,000 principal before a December 6 early deadline and $910 after. Accepting holders of the $135m outstanding in 2019s would get $875 per $1,000 principal through the early deadline and $800m after. The offer expires December 20. During the offer period, Axtel plans to also sell for cash $36m in the 2020 bonds, which pay 7.0% through January 2014, 8.0% through January 2015 and 9.0% after. The total amount in the exchange and new sale is capped at $146m. Axtel issued $249m in the 2020s in an exchange completed in February, also targeting holders of the 2017s and 2019s in a addition to peso debt.
Category: Regions
Funo Jumbo to Lead Busy Mexican DCM Week
Mexico’s Fibra Uno is targeting a Wednesday pricing to raise MXP13bn-MXP18bn ($983m-$1.3bn) in the first-ever domestic bond placed by a Fibra fund, say bankers familiar with the deal. The real estate fund is considering up to four tranches and may choose among a 5.5-year floating rate bond, 10-year and 20-year fixed-rate bonds and 15-year UDI-denominated notes. Proceeds will be used to refinance bank debt. BBVA Bancomer, Banamex, Credit Suisse and Santander are managing. The fund was Mexico’s first Fibra to IPO, in 2011. Other deals scheduled to price Wednesday include Mexico’s Banco Interacciones, offering MXP1bn 3.5-year notes paying a spread to the TIIE benchmark. The Mexican unit of US vehicle manufacturer Navistar is planning a MXP800m reopening of the 2018 floating-rate bonds it sold earlier in the year. Thursday, the government of Mexico’s Distrito Federal will look to issue up to MXP3bn ($227m) in the domestic bond market. The 10-year fixed-rate bonds are backed by future revenues passed down from Mexico’s federal government. The capital’s government is raising money to fund infrastructure projects and to repay debt. Santander is managing the transaction, rated AAA on a national scale.
Grana Takes TGP Stake with Canadian Backing
Peruvian construction firm Grana y Montero had agreed to buy a 12.38% stake in natural gas distributor Transportadora de Gas del Peru for $237m from Pluspetrol Resources, it says. The Canada Pension Plan Investment Board has extended a loan to the builder to fund the acquisition. Grana y Montero announced an agreement with the Canadian pension manager earlier in the month to invest together in Latin American infrastructure projects. The construction firm listed on the NYSE in July, raising $474m through the equity follow-on.
CFE Readies Infra Trust Bond
Mexico’s Comision Federal de Electricidad (CFE) is preparing to raise MXP2.7bn ($206m) in its next issuance through the Fideicomiso de Administracion de Gastos Previos (FAGP) trust, according to Moody’s, which assigns an AAA national scale rating. There were no other details immediately available for the transaction, which can be in UDIs or MXP. The previous FAGP sale was a 3-year bond done last year at TIIE+35bp through Scotia. The state-owned utility uses the Bancomext-guaranteed FAGP trust to pre-fund subcontractors’ authorized expenses under a special infrastructure program that cannot be reimbursed before project completion.
Banco de Bogota Launches FO
Banco de Bogota has launched rights offering period for the sale of new ordinary shares, it says, targeting a base deal of COP1.0trn ($517m), that could be upsized to as much as COP1.3trn. The bank is offering shares at COP63,000 each, which compares to a COP67,980 market price Thursday. The offer period closes December 18. Banco de Bogota is managing the sale itself. Parent Grupo Aval agreed to pay $646m for BBVA Panama in July, and in June Banco de Bogota agreed to buy Grupo Financiero Reformador in Guatemala through its Credomatic subsidiary for $411m. Aval is itself preparing to raise up to COP2.4trn in the domestic equity market.
Nexxus Fund Closes at $550m
Mexican private equity firm Nexxus Capital has raised $550m for its sixth fund, it says, above the $400m it targeted. Pension funds, sovereign wealth funds, endowments and other institutional investors participated. Nexxus VI includes MXP4.081bn ($312m) raised through a Certificado de Capital de Desarrollo (CCD) transaction closed in June. The economic terms of the limited partnership, which forms the other vehicle in the fund, are similar, targeting a preferred return of 10%. The CCD is denominated in pesos, while the other vehicle is dollar-denominated, according to a company representative. MVision Private Equity Advisers were lead global fundraising adviser, with Citi and Santander joint bookrunners on the CCD. The fund will buy into midsized companies primarily in Mexico.
Colombian Bank Raises Local Bond
Banco de Occidente has raised COP350bn ($181m) in Colombia’s domestic bond market, according to people familiar with the terms. A COP218bn 2015 tranche pays IBR+2.08%, a COP71bn 2017 tranche pays IPC+3.89% and a COP61bn 2020 pays IPC+4.35%. Total demand reached COP756bn. Corficolombiana structured the deal, rated AAA on a national scale. Casa de Bolsa, Credicorp, Corredores Associados, Serfinco, Bancolombia, Alianza and Occidente managed. The sale followed Occidente’s COP253bn placement in May.
Pemex Euro Pierces Dollar Curve
Pemex has raised EUR1.3bn ($1.75bn) in new 7-year bonds, it says, in a trade seen coming at an attractive level versus the Mexican state-owned oil company’s dollar curve. Investors put in for orders topping EUR5bn. The Baa1/BBB/BBB+ 2020 priced at 99.358 with a 3.125% coupon, to yield 3.229%, or MS+173bp, at the tight end of 175bp +/minus 2bp guidance that followed 190bp-area talk, according to people familiar with the terms. The issuer opted for a 7-year maturity over an 8-year tenor, the other spot where a new bond would have made sense based on investor feedback. The pricing compares to a MS plus 130bp-135bp level seen Wednesday on the issuer’s 2017 euro-denominated bonds, and a 195bp-200bp on its 2025s. DCM bankers away from the trade saw it coming at 5bp-10bp inside of Pemex’s USD curve and largely representing a smart trade for the issuer. The main investor types participating were pension funds, portfolio managers and financial institutions, Pemex says. BBVA, Credit Suisse and HSBC managed the transaction, which followed a three-day European roadshow. It was the first deal in the currency for Pemex since a $1.46bn-equivalent sale in 2009. Pemex was joined in the market Thursday by Panama, retapping its 2020 to fund a tender, but there is little indication of additional activity in a LatAm cross-border market lacking new announcements and issuers on the road.
Panama Upsizes 2020 Retap
Panama priced $500m in reopened 2020 bonds Thursday to fund a cash tender for its 2015 bonds, almost doubling the $260m size indicated earlier in the day. The 5.200% coupon bond reopened at 107.924 to yield 3.750%, at the tight end of 3.850%-area guidance, according to people following the sale. The sovereign received orders for $689m in the tender open Friday through Tuesday, and said early Thursday it planned to accept $345m. There was no indication following the pricing if Panama would increase the buyback due to the upsizing of the retap. The local market was also an option for Baa2/BBB/BBB Panama to raise funds for the tender. Panama offered $1,091 cash per $1,000 principal to holders of the 7.25% 2015. Citi and JPMorgan managed the new issue and the tender. Panama was previously in the dollar bond market in April when it priced a $750m 40-year bond. The 2020 bond was originally sold in 2009, raising $1bn.
Unifin ABS Maintains Price Level
Mexico’s Unifin Financiera has priced a MXP1bn ($76m) domestic ABS, according to people familiar with the deal. The 5-year bonds pay TIIE+160bp, matching the pricing Unifin got on its previous transaction in the program. Banamex and Banorte-Ixe managed the floating rate note, backed by credit receivables for automobile and equipment contracts and rated AAA on a national scale. The price matches the TIIE+160bp level it got on a MXP1bn 2017 sold in May.