Mexican antitrust regulators have denied an appeal to Sherwin-Williams in its quest to acquire Consorcio Comex, Sherwin says, meaning the acquisition isn’t authorized. The US paint maker “is considering all options, including whether to refile with the [Mexican Competition] Commission.” The parties agreed last year on the $2.34bn sale of all of Comex, before regulators challenged the Mexican portion in July. Officials were concerned about the ability to set artificially high prices in Mexico. In September, Sherwin completed the acquisition of Comex’s US and Canadian businesses, for $90m cash and $75m assumed liabilities. HSBC and JPMorgan have been advising Comex and Goldman Sachs advising Sherwin.
Category: Regions
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CAF Goes Back Down Under
Corporacion Andina de Fomento (CAF) has raised AUD225m ($213m) in Australia’s bond market, according to people familiar with the transaction, returning for a longer duration than it got with its first so-called kangaroo bond. The LatAm development bank drew more than AUD225m demand, allowing it to upsize from AUD100m expectations. The AA minus/Aa3/A+ lender priced the 2023 bond at 99.469 with a 6.250% coupon to yield 6.322%, or mid-swaps plus 195bp, in line with 195bp guidance. Australian investors represented 62% of the book, Asian buyers 26% – with Japanese buyers comprising half of Asian accounts – and Europeans 12%. Deutsche Bank and Westpac Institutional Bank managed the deal. Wednesday’s sale follows the August pricing of a AUD275m 4.25% 2016 bond at a 4.47% yield, LatAm’s first ever onshore AUD bond, followed a week later by a AUD75m retap at a 4.45% yield.
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Copper Company Seeks Project Funds
Canadian copper processor Amerigo Resources, through its Chilean subsidiary Minera Valle Central, is working with BBVA to structure loan financing for a $140m plant expansion, it says. The expansion will be majority funded by the loan, and the remainder by internal cash flow, say people familiar with the process. Syndication is expected early next year, as the copper tailings processor is still awaiting the necessary environmental approvals that will allow it to move ahead. Banks have already expressed interest in being part of the loan transaction, which is likely to have a term of 7-10 years with early repayment provisions, according to a person familiar with the matter.
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Mexican to Meet DCM
Fresnillo plans to start fixed-income investor meetings Friday, according to people familiar with the matter. The BBB/Baa2 Mexican silver and gold mining company will meet fixed-income accounts in London, Los Angeles, Boston, Chicago, before ending in New York November 6. Citi, Deutsche Bank and JPMorgan are managing. A 144a/RegS transaction may follow, subject to market conditions. 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.
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Moody’s Lifts Alestra
Moody’s has raised Mexican telecom Alestra’s credit rating to Ba3 from B1, it says. The move reflects increased comfort with Alestra’s positive revenue trends and an anticipated ability to handle its upcoming $200m debt payment due August 2014, the agency says. It is also expected to be able to take advantage of rising telecom demand in Mexico. The outlook is stable. In October, S&P raised its ratings on Alestra to BB from B+, also citing more comfort with its debt refinancing options. Fitch rates Alestra BB minus.
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Prologis Targets December Pricing
Prologis is looking at a mid-December pricing for the IPO of its Fibra real estate fund, according to people following the deal, expected to officially launch as soon as the first week of November. The US property manager’s Prologis Property Mexico fund is to initially hold 177 manufacturing and logistics properties in several Mexican cities, according to regulatory documents. The size and exact timing remain to be determined. Banamex, Banorte-Ixe, Actinver and Credit Suisse are managing the transaction.
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Upsized Progreso Bond Trades Up
Guatemala’s Cementos Progreso generated $2.2bn in orders for its $350m international bond debut, upsizing by $50m and tightening down yield while still seeing an aftermarket pop. The 2023 NC5 senior unsecured bond priced at 98.253 with a 7.125% coupon to yield 7.375%, at the tight end of 7.375%-7.50% guidance and earlier mid-to-high 7% talk. The bonds were trading up 2 points late Tuesday, according to investors. “Progreso was tight for what it was, but apparently I’m in a distinct minority,” says a New York-based portfolio manager following the sale and noting robust demand. A new bond from Mexican comp Grupo Cementos Chihuahua (GCC) might price near 8.0%, notes a banker away from the deal, spotting a 7.11% yield Tuesday on GCC’s 2020 bond and adding 80bp for curve extension and new issue premium. “But Progresso should price inside Chihuahua (B/BB-) given a higher rating, lower leverage, higher margins, and a better market position,” the banker says. Progreso plans to use proceeds for debt refinancing, capital expenditures and general corporate purposes. Cementos Progreso is the market leader in Guatemala’s cement industry, with a market share of 84% during the first half of 2013 in terms of volume sold, and is the only clinker producer in the country. Progreso was founded 1899 by Carlos Federico Novella Klee, who built one of the first cement plants in Latin America.
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CCX Unloads Mines
CCX Carvao da Colombia has agreed to sell a package of assets to Turkish natural resources group Yildirim for $450m, it says. The deal includes the open-pit Canaverales and Papayal mining projects, and the San Juan mine and its related logistics assets. The Colombian mining unit of Brazil’s EBX group had been trying to work out a deal with Transwell enterprises, under an exclusivity period that expired last month.
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Ecuador Hooks Russian PF Funds
Russia’s Rosexinbank has agreed to loan $195m to Ecuador to help build the Termogas Machala thermoelectric power plant in the El Oro province, Ecuador’s ministry for the coordination of strategic sectors announces. The facility will have an installed capacity of 187 megawatts and is expected to begin operation in 2016. The Russian bank may also lend to other Ecuadorian power projects, and signed memorandums of understanding for a pair of hydroelectric plants.
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Actinver Wants Equity Capital
Mexico’s Grupo Financiero Actinver is planning an equity follow-on targeting more than MXP800m ($62m), according to regulatory filings, with pricing estimated for December 10. The brokerage is offering 58.1m primary shares, assuming a 15% greenshoe. Such a deal would raise MXP848m at Tuesday’s MXP14.60 closing price. The shares are up more than 16% this year. Actinver expects to spend 67% of the proceeds on funding its existing operations, 13% on working capital and 20% on expanding into new product areas. Actinver and BBVA are managing the transaction. Actinver raised $68m-equivalent in its 2010 IPO.