Tuscany International Drilling, the Canadian-based and listed E&P company, is to list its shares in Bogota, but does not plan to place any new stock through the operation. There is no indication of timing.
Category: Regions
Posted inDaily Brief
Cnooc, Bridas Extend Talks for PanAm Stake
The joint venture between China National Offshore Oil Corporation’s (CNOOC) and Argentina’s Bridas has extended its talks with BP to acquire the British oil company’s majority stake in Pan American Energy for $7.06bn in cash. The parties had set November 1 as a final date for an agreement, but they decided to continue talks as regulators in China and Argentina work on a final approval. A BP spokesman said no new tentative final date has been agreed between the parties and noted that a final closing of the sale will happen sometime in 2012. The sale of BP’s 60% stake in the Argentine oil company was agreed in late 2010, after which Bridas paid BP $3.53bn as an initial deposit. The agreement states that should the sale fall through, BP would return the deposit and pay an additional $700m for “amendments to the Pan American Energy limited liability company agreement,” according to a statement in BP’s recently released 3Q 2011 earnings report. The sale of its stake in Pan American Energy was agreed as part of the company’s strategy of selling a number of worldwide assets following the Gulf of Mexico oil spill. Standard Chartered is advising BP.
Posted inDaily Brief
Oversubscribed ICE Set to Price
Books on Instituto Costarricense de Electricidad’s (ICE) new $250m 10-year went subject after filling nicely ahead of pricing today. Given decent demand the 100% state-owned Costa Rican electricity provider and telecommunications operator is expected price inside the low to mid 7% whisper heard earlier this week. The Baa3/BB+ rated borrower is being comped against CFE, Eletrobras and EEB, though Costa Rica’s 2020 bonds are being used as a starting point. ICE wrapped up its two-day roadshow Wednesday. This deal will be its first cross-border trade since 2004. Citi and Deutsche Bank are managing.
Posted inDaily Brief
Galp Talks with Bidders on Brazilian Stake
Portuguese oil and gas company Galp Energia is in talks with a shortlist of bidders for a stake in its Brazilian operations, according to a company official. Galp has been seeking to raise at least EUR2bn ($2.75bn) in Brazil and has sought to sell as much as 40% of its business in the South American country, which includes a participation in one of LatAm’s largest oil discoveries. Spokesman Tiago Villas-Boas says the company plans to settle on a buyer and conclude the transaction by the end of November. The financial details of the deal should be finalized before the year is out, he adds. The Galp official declined to say who the bidders involved are or if China Petroleum & Chemical is one of them. Galp in Brazil has stakes in oil wells located in the oil-rich Santos Basin, including the Lula find, considered the second-largest oil discovery in the region.
Posted inDaily Brief
Mexican Acquires US Poultry Producer
Mexican poultry producer Industrias Bachoco has struck a $95m deal to buy Arkansas-based OK Industries, in yet another instance of a Latin American company acquiring a US peer. OK is a privately held and family run business with $600m in yearly sales, a fraction of Bachoco’s $2bn annual sales. OK’s normalized Ebitda sits at roughly $20m a year, according to Bachoco estimates. Bachoco paid for OK in cash, mostly with its own funds and a portion obtained from a credit line, the company says. Under the terms of the agreement, OK is expected to keep its brands and name unchanged and to continue operating under the same leadership. Bachoco did not disclose its advisors.
Posted inDaily Brief
Sacyr Gets Chilean Road Loan
Spanish Construction company Sacyr Vallehermoso has reached a EUR276m ($379m) financing agreement with Chile’s Corpbanca to fund construction of a pair of motorways. Sacyr has a 35-year contract for the Bio-Bio and Rutas del Desierto concessions. Both parties decline to comment on the loan’s interest rate or maturity.
Posted inDaily Brief
Pichincha Considers Dollar Bond
Ecuador’s Banco Pichincha continues to evaluate opportunities to issue a dollar bond in the international markets, says Pichincha general manager Fernando Pozo. Timing has yet to be determined, though a $100m bond is one of several options being considered. Active on the M&A front, the potential issuer has kept busy by purchasing assets locally and abroad. Over the last twelve months, it has snapped up targets in Ecuador from GAMC and Lloyds Bank and is currently eyeing buys in Spain. Pichincha works with NY-based M&A boutique investment firm Athelera and has yet to select banks for a potential bond transaction. Pichincha has issued shorter term dollar debt, but has yet to sell long-term debt internationally.
Posted inDaily Brief
Contour IPO Aims for November Launch
ContourGlobal LatAm is targeting a launch of its Bogota IPO before the end of the month. The power generator with assets in Colombia and Brazil plans to sell 27.6m shares, or about 28% of itself. As is customary in Colombia’s local ECM, it will indicate the price when it sets the launch date. The issuer, part of US-based ContourGlobal, is raising funds to develop projects. The company’s main operating assets include a stake in the Termopaipa and Termoemcali power plants in Colombia, as well as a wind farm and two hydroelectric projects in Brazil. Bancolombia and Corredores Asociados are managing the sale.
Posted inDaily Brief
EEB Targets Low 6s
Empresa de Energia de Bogota (EEB) is set to price a $610m 10NC5 bond as soon as today after whispers were heard in the low 6% area Wednesday. Both EEB and Costa Rica’s ICE aim to pull the trigger today against what was a better market backdrop Wednesday. The split rated Baa3/BB+ Colombian utility is raising money to fund a call on its $610m 8.75% 2014 bond. With EEB’s outstanding bonds already trading around the call price, investors are largely comping against Empresa Publica de Medellin’s (EPM) 7.625% $500m 2019s, which have been trading around 5.10%. One investor said he would require a 25bp premium for EEB’s split rating versus the Baa3/BBB on EPM, plus another 50bp for EEB’s holdco status and perhaps some extra pickup to compensate for volatility. “I think that a 6.20% area should be ok, but maybe EEB can tighten from there if they have good momentum,” the investor adds. “At low 6% EEB looks good at 100 over EPM,” adds a portfolio manager. Even at 6.25% yield, investors say the deal would represent a juicy pick-up to the sovereign’s 10-year bonds which were trading at 3.60% Wednesday. Deutsche Bank and Santander are managing the sale. Last month, EEB launched a COP700bn ($360m) equity follow-on and is expected to upsize the deal to about COP770bn.
Posted inDaily Brief
BNP Mexico Loses Country Head
Jean-Damien Drouillet has resigned as BNP Paribas Mexico’s country head, the bank says. It does not give a reason, and says it is in the process of naming a replacement. The bank lost its fixed-income head, Octavio Calvo, to Santander in September.