The Norwegian bond market and mezzanine financing are among some of the options OSX is considering, says Roberto Monteiro, the company’s CFO. The Brazilian shipbuilder, which recently saw its first FPSO delivered in Rio de Janeiro, may receive a welcome reception in a Norwegian market already familiar with the offshore oil sector. “Many oil companies do bonds in Norway,” says Monteiro. “This is something we may consider. It is not a market where you can finance an FPSO, but it is an interesting strategy for a bridge.” In a good year, the Norwegian market absorbs some $5bn-$6bn in debt with tenors ranging from 3 to 7 years, he adds. This comes as the company puts together a mezzanine loan of around $50m in size to bring the debt component of the recent OSX-1 financing to 80%. This is another niche that OSX is willing to explore. “You can raise $100m here and there. You can always be in the market rolling this [over],” he adds.
Category: Regions
Wamex Retaps CCDs
Wamex has reopened its certificado de capital de desarrollo for MXP667m ($48m), according to the Bolsa. The 2019 CCD was originally sold in November 2009 for MXP750m. At the time, it failed to reach its MXP1bn targeted size, but the borrower was expected to return to market to make up the difference. Proceeds from the transaction created a private equity fund that invests in Mexican companies or projects. Buyers of the instruments receive 100% of their original investment, plus an additional 12.5% preferred return. After that, investors will get 80% of additional proceeds, with Wamex keeping the rest. ING managed the reopening.
PacRu Tops $336m in Tender
Creditors holding $336.4m of $450m in outstanding Pacific Rubiales 8.75% 2016 bonds have agreed to exchange them for newly issued 7.25% NC5 2021s following the close of the early subscription period. The Canada-based Colombian oil producer has also extended the expiration date on the offer by another day to January 3. Pacific Rubiales is offering new 7.25% NC5 2021s identical to those sold for cash in a $300m offering earlier this month. Holders tendering before the December 16 early deadline get $1,150 in new bonds per $1,000 tendered, but will only receive $1,120 thereafter. Bank of America Merrill Lynch managed the new issue and is also managing the exchange offer.
CFE Plots Domestic Bonds
Mexico’s Comision Federal de Electricidad (CFE) is preparing to raise up to MXP8.77bn ($635m) in two deals in the local bond market in the new year. The state-owned utility is planning to sell up to MXP6bn in 10-year fixed and floating-rate bonds, with an eye on a January 10 pricing. Proceeds will be used to cover infrastructure project expenses. Ixe and Scotia Capital are managing the sale, rated Aaa on a national scale. Separately, CFE is readying an up to MXP2.77bn 3-year floater and targeting a pricing date of January 24. This will be done through a recently-renewed Bancomext-guaranteed trust to pre-fund subcontractors’ authorized expenses under a special infrastructure program. Scotia is managing this transaction, rated AAA on a national scale. CFE issued under this program earlier this month, raising MXP1.358bn in 4-year bonds at TIIE+35bp, through Ixe.
Medellin Names New EPM CEO
The mayor of Medellin has named Esteban Calle as CEO of Empresas Publicas de Medellin (EPM), replacing Federico Restrepo. Calle, currently a portfolio manager with BMO in Toronto, will take over January 1 at the Colombian utility, when Restrepo steps down. Calle was previously secretary of labor for the state of Antioquia, and was a banker at Corfivalle and Chase Manhattan Bank.
BP Buys Aviation Fuel Assets from Shell, Cosan
Air BP, a unit of the British oil company, has purchased aviation fuel facilities in 7 Brazilian airports from Shell and Cosan Industria e Comercio in a deal valued at BRL185m ($99.9m). The asset acquisition will help BP up its presence to 18 airports in Brazil and allows it to service roughly 66% of aviation fuel demand in the country, BP says. Officials at BP could not immediately discuss valuation metrics or reveal if any details on advisors. The oil major has lately expanded its presence in the country through several acquisitions. Earlier this year BP spent a combined $96m in transactions in an effort to increase its stake in Brazilian biofuel producers Companhia Nacional de Acucar e Alcool (CNAA) and Tropical BioEnergia.
Inbursa Talks MXP Price
Mexico’s Banco Inbursa is heard targeting a TIIE+15bp-25bp price for an up to MXP3bn ($216m) issuance of 2-year floating rate bonds. December 21 is the tentative issuance date, market conditions permitting. The bank originally had plans to issue up to MXP6bn of 5-year floating rate bonds earlier this year. Proceeds will be used to fund bank operations. HSBC and Inbursa are leading the transaction, rated AAA on a local scale. Inbursa last issued in July, pricing a MXP4.9bn 2014 bond at TIIE +20bp via Actinver, BAML, Inbursa and Santander.
Colombia Holds Rates
As expected, Colombia’s central bank has elected to maintain the country’s benchmark interest rate at 4.75%. In its communique, the bank cites continuing international volatility, an acceleration in domestic credit growth and inflation that should finish the year at 4%. The bias is still for keeping the rate unchanged for longer or a possible hike in the future if necessary, Nomura says.
Cabei Poised to Close Loan
The Central American Bank for Economic Integration (Cabei) is poised to close a $100m 3.5-year dual-currency loan this week through MLAs and bookrunners Mizuho and HSBC. The 3.5-year bullet loan is split into a $40m-equivalent yen tranche and a $60m dollar portion. Five Asian banks are heard to be participating on a loan that comes with an all-in margin of around Libor+160bp.
KOF Ups Buying Spree with Queretano Bottler
Coca-Cola Femsa (KOF) has acquired the bottling operations of Grupo Fomento Queretano in a transaction worth MXP6.6bn ($479.3m), an indication of further consolidation in the Mexican bottling sector. As part of the purchase of Queretano, one of the oldest bottlers in Mexico, KOF will assume MXP1.22bn ($88.7m) of the target company’s debt and will pay Queretano shareholders with 45.1m of KOF’s newly issued L shares, at an estimated price of MXP119.29 per share for a total of roughly MXP5.38bn. The Queretano purchase also leaves KOF with a 26.1% equity stake in sugar producer Promotora Industrial Azucarera, up from the 13.2% stake it already owned. KOF officials could not immediately offer deal valuations. Queretano retained M&A advisory firm Seale & Associates, and law firm White & Case to advise on the deal, while KOF hired law firm Ritch Muller and Deloitte Galaz, Yamazaki, Ruiz Urquiza to handle the financial advisory. The operation would mean a 2.3% dilution to KOF shareholders, taking into account KOF’s prior two acquisitions this year of bottler Cimsa and Grupo Tampico, and it implies a valuation of EV/Ebitda of 9.7x, Santander says in a research note. Santander reckons that Queretano would increase KOF sales by 2.5% or MXN3bn and would add MXP683m to Ebitda, a 2.8% increase. In a separate note to investors, Moody’s indicates that it expects KOF’s credit metrics to remain robust despite this transaction, leaving it with a debt-to-Ebitda level of 1.14x. Since KOF held roughly MXP18.65bn in cash as of September 30, Moody’s expects the company to prepay an estimated MXP6.07bn in debt it has assumed from companies it has purchased this year. KOF shares closed Thursday at MXP121.84.