The Republic of Panama has launched a three-day cash tender offer targeting holders of its $962m outstanding in 7.25% 2015 bonds, it says. The sovereign is offering $1,091 per $1,000 principal through Tuesday. Liability management has been a strong theme for sovereigns in LatAm this year, and Panamanian officials have previously indicated they would be interested in joining in. Last year, Mahesh Khemlani, then Panama’s vice minister of finance, told LatinFinance the sovereign had looked at its 2015 dollar bonds as a starting point. Panama is not specific about what it could sell to raise funds for the cash tender, noting only that Friday’s tender is “conditioned upon settlement of an issue of local Panamanian bonds or other financing, or a combination.” Citi and JPMorgan are dealer managers. Panama, rated Baa2/BBB/BBB was last in the dollar bond market in April when it priced a $750m 40-year bond.
Category: Regions
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.
Codensa Places Well Bid Domestic Bond
Codensa has raised COP275bn ($143m) in Colombia’s domestic bond market, according to people following the sale. The electric distributor priced a COP166.4bn 2018 tranche at IPC+3.92, inside a 4.40% limit, and a COP108.6bn 2025 portion at IPC+4.80%, inside a 5.40% limit. Total demand reached COP900bn. Codensa is raising proceeds to pre-finance upcoming bond maturities. Corredores Asociados, Bancolombia, Correval and BBVA managed the deal, rated AAA on a local scale.
EEB Adds to 2021
Empresa Energia de Bogota (EEB) has raised $112m through a private placement reopening its 6.125% 2021 bond, it says. The total issue size is now $722m, following the initial $610m sale. The BBB minus/ Baa3 borrower reopened the bond at 101.75 to yield 5.847% in a deal done quietly during the previous week. Proceeds will be sued to help finance investments in Guatemala and thus strengthening transmission infrastructure in Guatemala through its affiliates Tecsa and EEBIS. Deutsche Bank managed. The markets expect more fundraising ahead from EEB, particularly if it emerges the winner of the sale process of the Colombian government’s 57.7% stake in Isagen. EEB indicated its interest in August, entering a process with other bidders including Grupo Argos, Duke Energy and GDF Suez. The government is asking $2.63bn for the stake.
Fibra Names CFO
Terrafina has named Angel Bernal as CFO, it says, effective December 15. He will report to Alberto Chretin, CEO of the trust focused on industrial properties. Bernal joins from LaSalle Investment Management Mexico, where he was vp and acquisitions officer. He replaces Francisco Navarro.
Fitch Raises Mexichem
Fitch has upgraded Mexichem’s rating to BBB from BBB minus, it says, based on a strong business and financial profile. The Mexican petrochemical producer has doubled in size since 2009, through organic growth and acquisitions. The agency calls Mexichem’s credit metrics “strong,” and expects net leverage will remain within the management’s 2.0x target. “Mexichem’s financial profile is underpinned by its recurring positive free cash flow and its strong business profile as a leading vertically integrated chemical and petrochemical company in Mexico, with a geographically diversified operating base and low cost structure,” Fitch says. Total debt to Ebitda for the 12 months ended September 30 was 2.5x and net debt to Ebitda 1.1x. The outlook is stable.
Fovissste Plans RMBS
Mexican government-backed housing lender Fovissste plans to raise up to MXP4.6bn ($357m) through a domestic RMBS sale in December, according to a regulatory filing. The planned 29.5-year fixed-rate bond is denominated in UDIs. Proceeds will fund lending. Actinver, Banorte-Ixe, and CI Casa de Bolsa are managing the sale, rated AAA on a national scale. Fovissste last visited the local market in October, raising MXP4.6bn in a UDI-denominated 2039 issue which was priced at 3.23%, or Udibonos+185bp.
Mexican Moves for Telecom Argentina
Mexican investor Fintech has agreed to buy a 22.7% stake in Telecom Argentina from Telecom Italia for $960m, Telecom Italia says. In the deal, Fintech is buying shares held by the Sofora Telecomunicaciones, Nortel Inversora and Tierra Argentea entities. The Mexican shop owned by businessman David Martinez also plans to launch a tender for the remaining shares of Telecom Argentina and of Nortel, as required by law. The transaction is subject to regulatory approvals. Barclays provided a Fairness opinion to the target, according to Dealogic data.
Mexican Targets European Food Purchase
Mexico’s Sigma Alimentos is making a EUR675m ($908m) bid for European meat company Campofrio Food Group, it says. The food products unit of Grupo Alfa has signed purchase agreements with shareholders for shares representing 45.2% of the company, at EUR6.80 per share, and will launch a cash tender offer to buy the remaining shares, it says. Campofrio shares closed at EUR6.87 Thursday. The agreements bring Pedro Ballve, a Campofrio family member, into Sigma as a shareholder and chairman of the board. Sigma will finance the buy with credit it has lined up already. The banks and law firms advising on the transaction have not been disclosed. Separately, Sigma is targeting an IPO via Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe, for which the timing is unclear.
Colombian to Tap Local Market
Codensa plans to issue COP275bn ($142m) in Colombia’s domestic bond market today, with the ability to upsize the sale to COP375bn, according to people familiar with the trade. The electric distributor is expected to offer a 5-year IPC-linked tranche with an anticipated maximum interest rate of IPC+4.40% and a 12-year IPC-linked tranche with a maximum interest rate of IPC+5.40%. Codensa is raising proceeds to pre-finance upcoming bond maturities. Corredores Asociados, Bancolombia, Correval and BBVA are managing the deal, rated AAA on a local scale.