Peru’s Cementos Pacasmayo (CPAC) is planning an equity follow-on, marking what would be its debut New York listing. The Hochschild Group-controlled cement maker is seen looking to raise about $250m to fund the expansion of its La Rioja plant and also develop a phosphate and brine project. JPMorgan and Santander are managing the deal, which would bring the total of New York-listed Peruvians to 5.
Category: Regions
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Port Operator Targets Lima IPO
Andino Investment Holding is planning to raise as much as $60m-equivalent in a January 17 share offering. The port operator is looking to sell 15m-30m shares, heard likely to come at around PES5.10 each. If the full amount is sold at this price, the issuer is looking at raising PES153m ($57m). Proceeds would be used to reduce debt and for expansion projects. BCP is managing the sale. Andino borrowed $85m from Goldman Sachs last year to purchase fellow port operators Neptunia and Agencia Maritima.
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CFE Sees January Pricing Date
Mexico’s Comision Federal de Electricidad (CFE) is heard planning to sell up to MXP6bn ($437m) in 10-year fixed and floating-rate bonds in late January. The Mexican state-owned issuer has set a preliminary pricing date of January 10. Proceeds from the bond sale are expected to cover infrastructure project expenses. Ixe and Scotia Capital are managing the sale, rated Aaa on a national scale.
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Vitro Sidesteps Legal Block to Restructuring
Mexico’s troubled glass maker Vitro managed to sidestep a restraining order preventing its subsidiaries from voting for a controversial $3.6bn debt restructuring that has bondholders up in arms. The US Court of Appeals for the Fifth Circuit reinstated the company’s Chapter 15 filing rights and eliminated a NY State Supreme Court’s mid-December restraining order blocking the company’s subsidiaries from voting in favor of Vitro’s restructuring plan. Vitro supported the move in a press statement and noted that “the NY State Court decision was not enforceable since our subsidiaries had already consented to the plan.” The glassmaker has used roughly $1.9bn in intercompany debt to give itself enough voting power to approve what has been largely an unpopular restructuring plan for other creditors. As it stands, the company’s restructuring proposal includes $814.7m in new 2019 bonds, a fee of up to $32.7m and mandatory convertible debt of $95.8m. JPMorgan has estimated that creditors who accept the deal may recover between 48 and 60 cents on the dollar, depending on the level of debt-holder support. Vitro’s move has aggrieved bondholders and caused other investors to worry about the repercussions that Vitro’s successful restructuring would have on the access to credit of other Mexican companies.
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Bancolombia Launches $885m Preferred Share Offering
Bancolombia has begun a massive 64m preferred share offering that stands to generate $885m for Colombia’s largest financial institution. The issue, which represent 8.12% of all shares outstanding, will be offered to established shareholders at COP26,000 ($13.83) per share, and the unsold balance is to be sold to overseas buyers, Bancolombia says. The shares are registered both in the local Colombian bourse and in New York’s NYSE Euronext as ADRs. The deal is being managed by Bancolombia’s investment banking arm, while Brigard & Urrutia is handling the legal aspects of the transaction. The bank has sought additional capitalization especially since it spent $150m in joining Grupo Sura’s bid for ING’s LatAm insurance assets late last year. It has also been trying to improve operational efficiency. In a recent LatAm banking note, Santander’s equity research analysts kept a hold rating on the bank’s shares, noting that they “do not expect a turnaround in the [bank’s] cost efficiency situation and [remain] discouraged by the bank’s relatively weak capital position.”
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Sinochem Ups China’s Oil Buys In Brazil
China’s Sinochem will acquire a 10% stake in five Brazilian oil concessions from UK-based exploration and production company Perenco, as part of an exploration farm-out agreement. In exchange for the stake in five offshore blocks of Brazil’s Espirito Santo basin, the Chinese company has agreed to fund several exploration wells, Perenco says. Perenco will retain a 40% stake and maintain its role as sole operator of the projects, while OGX Petroleo e Gas will keep a 50% stake. The financial terms of the deal were not revealed. The companies could not immediately be reached for additional details of the transaction. The Brazilian government awarded the concessions for the deep water wells during the 9th licensing round held in December 2007. Perenco’s agreement with Sinochem comes almost five months after it was forced to cancel a planned IPO for its Brazilian unit, led by BTG, Itau and Morgan Stanley, citing market upheaval. The share offering was meant to raise funds to finance the development of the five blocks.
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Tenaris Confab Loan to Fund Usiminas Share Purchase
Tenaris Confab, a subsidiary of steel tube supplier Tenaris, plans to use a $350m 5-year syndicated loan to finance its acquisition of 25 million common shares of Usiminas, according to the company. HSBC has been mandated to lead the transaction which has a 12-month grace period and is expected to pay a yearly margin of between 175bp-250bp over Libor, it says.
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Bimbo Preps Domestic Foray
Mexico’s Bimbo plans to sell up to MXP5n ($363.4m) in bonds in the domestic market early next month. The 7-year fixed-rate bonds will represent the fourth issuance under a MXP20bn program with proceeds to be used to help refinance a $1.3bn syndicated loan. Inbursa, ING, and HSBC are managing the deal, rated AA plus on a national scale. The size of the domestic transaction may be adjusted depending on results of Bimbo’s cross-border bond, says a banker on the deal. Meanwhile, the Mexican baked goods company will hit the road next week splitting into two teams to go to San Francisco, the Mid West, New York and other East Coast cities next week. BBVA, Citi and Santander, have been mandated to organize meetings with talk that a 144A/RegS transaction may follow should market conditions permit for its international bond plans.
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Spain’s CAF Cuts Stake in Mexican Rail Venture
Spain’s rail operator Construccion y Auxiliar de Ferrocarriles (CAF) has reduced its stake in Mexico’s Ferrocarriles Suburbanos (FFSS) project to 43% from 85% in a restructuring that increased the Mexican state’s participation in the venture. Through a capital increase, CAF managed to decrease its stake, while Mexico’s Fondo Nacional de Infraestructura (Fonadin) came in as a shareholder with 49%, CAF says. CAF’s stake reduction takes place in the form of an adjustment of a credit balance in favor of Fonadin, but no details of the amounts were released. Under the deal, Fonadin will also add MXP2.34bn ($170.7m) to increase the FFSS debt contingency fund, while the FFSS rail concession is extended until 2050. The number of users on the FFSS rail project averages 130,000 a day, and is far below an original estimate of as much as 300,000 a day. This has made it harder for the partners to recover their investment. In July 2006, FFSS closed a $271 million syndicated loan led by Banesto, Santander and Banobras to complete the first stretch of its Mexico City train project. The total cost of the project was estimated at $613 million.
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TGI Heard Mandating Ahead of Call Date
Transportadora de Gas Internacional (TGI) is heard awarding a mandate to two banks for an international bond transaction. An official announcement has yet to be made, but Citi is thought to be a top contender. TGI is heard looking to refinance its existing 9.50% $750m bonds due 2017, which are callable on October 3 2102 at 104.75.