Comerci’s $3.2bn Workout
Category: Regions
Posted inMagazine
Venezuelan Roulette
Chevron and PDVSA hope to finance an ambitious new mega oil project in Venezuela. Under the right conditions, they may just succeed.
Posted inMagazine
HIGH-GRADE BOND – América Móvil’s $2.75bn Dual-Tranche Offering
América Móvil’s $2.75bn Dual-Tranche Offering
Posted inMagazine
Room for Mistakes
Peruvian political risk is back in the headlines. But so far investors are taking such events in their stride as President Humala pursues market friendly policies.
Posted inDaily Brief
Peruvian Mining Co Preps Bond Debut
Peru’s Volcan Compania Minera plans to meet bond investors ahead of an expected $600m 10-year bond. The miner will begin today in Lima, visiting Santiago and Lima tomorrow, London and Los Angeles Monday, Switzerland, San Francisco and New York January 24, and finish in Boston and New York on January 25. JPMorgan and Morgan Stanley are taking the issuer on the road. The company’s board has approved an up to $600m issue maturing in 2021, according to Moody’s, which assigned a Baa3 rating to the deal. Proceeds are expected to be used to finance energy projects. This would be Volcan’s debut in the cross-border bond market, though it did take out a $200m syndicated loan in 2008. At the time it secured a 3-year loan at Libor+140bp via leads BBVA. Other banks participating included JP Morgan, Credit Suisse, Barclays, Deutsche Bank, Societe Generale and UBS. The borrower is involved in the extraction, concentration, treatment and commercialization of polymetallic ores such as zinc, lead, and silver.
Posted inDaily Brief
Pemex Pinches Premiums Tighter
With optimism over global growth prospects bolstering stock markets Tuesday, Pemex decided to step forward with a new 10-year benchmark that ultimately squeezed its new issue premium to anywhere between 10-14bp. Testing the waters with plus 325bp area guidance, Mexico’s state-owned oil company was able to build a $5.5bn book before launching at 315bp and pricing a $2bn 2022 at 99.119 with a 4.875% coupon to yield 4.988%. “We thought it was fair value and bought it,” says a London-based EM debt portfolio manager. The bond was thought to give investors a new issue premium of anywhere between 10bp-14bp against a curve adjusted spread on the existing 2021s. “Considering the amount of supply from Mexico and final pricing at 10bp adjusting for curve, it was a good new issue premium,” notes a rival banker. In all, about 20% of investor participation came from Europe, 14% from Mexico and the rest from the US with institutional accounts playing a leading role. The borrower essentially interrupted investor meeting to launch the trade, but will continue engaging accounts into next week. The bonds were trading flat in the grey, according to an investor. The issuer has an option to exercise a greenshoe during Asia hours. Bank of America Merrill Lynch, Citi and HSBC led the 144A/RegS transaction.
Posted inDaily Brief
Colombian Conglomerate to Hit Road
Grupo Aval will launch a fixed-income roadshow tomorrow, ahead of a possible 10-year bond that would mark a cross-border bond debut for the Colombian holding company. The borrower will begin in Santiago, then meet investors in London and Lima on Friday, and Boston and Los Angeles Monday, before wrapping up in San Francisco and New York on January 24. JPMorgan and Goldman Sachs are managing the bond, which has been rated Baa3 by Moody’s.. In December, Grupo Aval’s banking unit Banco de Bogota priced a $600m 5.0% 5-year bond at a 5.25% yield, via Citi, HSBC and JPMorgan. The bonds were trading at 101-102 Tuesday afternoon.