Mexican miners Cobre del Mayo (CDM) and Fresnillio were each expected to price new bonds as soon as today, according to people following the transactions. Copper miner CDM was heard with more than $200m demand for a $200m-$250m 5-year bond, following 11%-area guidance given Wednesday. A deal would represent the international bond market debut for the B3/B credit. CDM is raising funds to refinance most of its $210m total debt. To determine pricing, CDM has been looking to single-B credits like Marfrig’s 2020, seen trading around 10.3%, and Gol’s 2020, trading around 11.5%. Jefferies, BCP Securities and Nomura are managing the RegS-only process. The issuer operates Mexico’s third-largest copper mine, Piedras Verdes. Separately, Fresnillo was expected with initial details on the sale it had been marketing through Wednesday. The BBB/Baa2 silver and gold miner was considering issuing both 10-year and 30-year bonds, with a $300m size per tranche, according to an investor following the deal. Citi, Deutsche Bank and JPMorgan are managing.
Category: Regions
Guatemalan Prices Bond Debut
LatAm high-yield and split-rated borrowers continue to enjoy market access, with Banco de los Trabajadores (Bantrab) raising $150m in its international debut bond sale. The Guatemalan bank drew 2x demand for the 2020 note, allowing it to print at the tight side of initial price thoughts. Bantrab priced at par with a 9.0% coupon, tight to 9.0%-area guidance and earlier low-9% talk. The bond traded up 1.0 points Wednesday afternoon, according to a trader. The Ba3/BB minus lender based pricing on investor feedback, in addition to Guatemalan reference points including Cementos Progreso’s 2023 bond, seen trading to yield 6.94%-6.90%, and Banco Industrial’s (Baa3/BB) 2022, trading to yield 6.50%-6.40%. Bantrab is raising funds to refinance debt and support growth efforts. Deutsche Bank and BCP Securities managed the deal, done through a Cayman Islands SPV. Elsewhere in the dollar bond market, Peru’s Andino Investment Holding (AIH) was expected to price today, after indicating 10%-area price talk Monday for a $130m 2020 NC3 bond and targeting pricing as soon as Wednesday. Bank of America Merrill Lynch, Credicorp and Goldman Sachs are managing the B+/BB minus transaction.
Sugar Producer Targeting $400m
Guatemalan sugar producer and exporter Ingenio Magdalena is looking at a $400m bond transaction, according to Fitch, which assigns a BB minus rating. The debut issuer was scheduled to market a 5-10 year bond through today. No initial price talk had been issued as of late Wednesday. The issuer is raising funds to refinance existing debt and for general corporate purposes. The proposed bonds will have the guarantee of certain subsidiaries that represent approximately 94% of the company’s total assets and close to 100% of consolidated Ebitda, the agency says. Fitch notes a “solid position” in the sugar exporting and biomass power generation sectors, weighed down by presence in a cyclical industry and $136m capex needs in 2013-2015 that should mean negative free cash through 2014. Citi and JPMorgan are managing the BB minus/BB minus transaction.
Banco de Chile Returns for CHF Funds
Banco de Chile has returned to the Swiss bond market to raise CHF175m ($191m), according to people familiar with the transaction. The 2019 bond represents the Chilean lender’s fourth-ever CHF issuance, and priced at 100.251 with a 1.500% coupon to yield 1.535% or mid-swaps plus 70bp, in line with MS+70bp guidance. BNP Paribas and Deutsche Bank managed the Aa3/A+ sale. Banco de Chile previously raised CHF225m in the Swiss bond market in June, pricing a 2016 floating-rate bond at Libor+60bp.
Developer Launches Mall Fibra
Mexican developer Grupo Acosta Verde is targeting more than MXP5.0bn ($380m) in the IPO of its Fibra, pricing November 20. The Fibra Sendero shopping mall-focused real estate fund is offering 264m shares, assuming a 15% greenshoe, at MXP20.00-MXP25.00 each, meaning a MXP5.28bn transaction at the midpoint. The all-primary share deal is to include both Mexican and international tranches, with the size of each determined at pricing. Sendero starts with 10 operating malls spread throughout five Mexican states, and aims to acquire land to develop six more. The malls are focused on the middle and lower-middle classes, also known as C and D classes. BBVA and JPMorgan are global coordinators on the sale, with UBS also on the international portion and Banorte-Ixe managing the local portion.
Inbursa Talks MXP Price
Mexico’s Banco Inbursa is looking to pay TIIE+27bp-area on domestic bond scheduled to price today, according to people following the transaction. The Carlos Slim bank is targeting MXP11.5bn ($876m) in 3.7-year bonds, in order to raise funds to improve its liquidity profile and for general banking purposes. Inbursa, Bank of America Merrill Lynch, Finamex, Banamex, BBVA Bancomer, Banorte-Ixe and Actinver are managing the transaction, rated AAA on a national scale.
Mexican Blue Chips Close in on Large Domestic Sales
Mexico’s Grupo Televisa and Comision Federal de Electricidad (CFE) are each considering pricing a domestic bond sale as soon as this week, according to people following the transactions. Televisa is planning to raise up to MXP10bn ($766m) in the domestic bond market this week, say bankers familiar with the process. The broadcaster is considering 10-year and 15-year notes. Proceeds will be used to refinance debt and for general corporate purposes. Banamex, BBVA Bancomer and Santander are managing the sale, rated AAA on a domestic scale. Separately, CFE is said to have decided against pricing today, but could still do a deal as soon as Thursday or Friday. The government utility is planning to raise up to MXP10bn ($766m) in 5-year floating-rate notes and 10-year fixed-rate notes. Banorte-Ixe, BBVA Bancomer, Santander and HSBC are managing the sale, rated AAA on a domestic scale.
Mexican Miner Looking at Dual Tranche
Mexico’s Fresnillo is considering issuing both 10-year and 30-year bonds, with a $300m size per tranche, according to an investor following the deal. The issuer has not issued initial price thoughts or guidance as of Tuesday. The BBB/Baa2 silver and gold miner is scheduled to end a roadshow process today in New York and could price a deal as soon as Thursday. Citi, Deutsche Bank and JPMorgan are managing. In April, the miner sold GBP222m ($344m) in shares to shareholder First Eagle Investment Management, to meet a free-float obligation. It has not issued bonds internationally or in Mexico’s domestic market, according to Dealogic data.
Avianca ADS Land Below Range
Avianca has priced the debut of ADS representing preferred shares of the Avianca Holdings entity below the range, and should raise $408m. The total demand was not immediately available late Tuesday. The airline is selling 12.5m primary ADS and 14.7m secondary ADS, assuming a 15% all-secondary share greenshoe, at $15.00 each, according to people familiar with the transaction. The price comes versus a $17.00-$20.00 range, and a COP3,945 ($2.06) close Tuesday of the preferred shares, that suggested a level of $16.48 per ADS. Each ADS represents eight Avianca Holdings preferred shares. The discount to the local shares was somewhat anticipated, according to people following the sale, based on the lower domestic liquidity levels. The secondary portion is sold by former Taca executives Juaquin Palomo and Alfredo Ratti and the entities representing the controlling Eframovich brothers and Kriete family. The Eframovich brothers should control a position equal to 78% of the common stock following the deal. The Panama-domiciled Colombia-listed holdco is raising funds to modernize the Avianca-Taca fleet. JPMorgan and Citi led the transaction, joined by UBS, BTG Pactual and Deustche Bank. Avianca and Taca merged in 2010, and the domestic IPO of the preferred shares raised $283m-equivalent in 2011.
ISA Adds in Brazil
Interconexion Electrica (ISA) has agreed to acquire Nelson Quintas Telecomunicacoes in Brazil for BRL190m ($83m), it says. Acting through its Internexa Brazilian subsidiary, the Colombian obtains a fiber-optic network in Rio de Janeiro. Internexa plans to borrow funds in Brazil to finance the purchase, it says. ISA was already present in Brazil through the CTEEP electricity transmission company.