Holders of Banco de Credito Del Peru’s 6.95% 2021s have agreed to exchange $117.04m of the notes for recently issued 6.875% fixed-to-floating rate 2026s, mopping up most of the $120m of existing instruments. Accepting holders got $1,078.38 worth of new bonds per $1,000 of the old ones, including a $30 early acceptance premium, or $1,048.38 if they participated after the early bird date but before the final expiration of October 24. Creditors also agreed to waive a provision in the original notes that keeps BCP from accepting more than $70m worth of bonds in such an offer. The new notes are the same as those offered on September 8, in a $350m sale. The NC10 bonds pay a fixed coupon and switch to a rate of Libor+7.708% after year 10. Bank of America Merrill Lynch and Morgan Stanley ran the initial sale and also managed the exchange offer. The 2021 notes were originally issued in 2006.
Category: Regions
BCP Preps Local Bond
Banco de Credito del Peru (BCP) is expected to sell today up to PES150m ($55m) in domestic bonds, according to a banker managing the sale. The 5-year bonds will pay an interest rate to be set during an auction process. BCP’s own brokerage is managing the deal.
IDEAL Heard Talking Price
Mexico’s Impulsora de Desarollo y El Empleo en America Latina (Ideal) is looking to pay TIIE+55bp on a 3-year floating-rate bond and TIIE+75bp on a 5-year. Ideal plans to raise up to MXP4.5bn ($336m) in a transaction that would be its Mexican domestic market debut. The Carlos Slim infrastructure vehicle is looking to price on November 8. A preliminary size for the 3-year bond is MXP3.8bn with the difference to be used for the 5-year tranche. Bancomer, BAML, Inbursa and HSBC are leading the transaction, rated AAA/AA on a national scale.
Pacific Rubiales Tempts Convert Holders
Pacific Rubiales is giving holders of its 2014 8.0% convertible bonds the chance to convert to equity early with an additional premium. The Toronto-based Colombian oil producer is offering accepting holders all of the shares due under the current conversion rate of 77.94 shares per CAD1,000 face value, plus additional shares with a value equal to CAD200. The price for the additional shares is to be set as the average price from October 27-November 4. The offer is open from November 9-29. Pacific Rubiales says it is undertaking the offer “to bring maximum balance sheet flexibility” so that it can pursue and execute its acquisition strategy. RBC is managing.
Findeter Taps Local Market
Colombian state-owned development finance agency Findeter has raised COP339bn ($181m) through a domestic bond sale. The value represents an increase from the previously-planned COP200bn. A COP60bn two-year tranche pays IBR+1.82%, a COP24bn three-year tranche pays IBR+1.90% and a COP256bn five-year tranche pays IPC+3.82%. Findeter coordinated the sale itself, aided by a group of local brokerages.
Three Join Exalmar Loan
Banco de Credito Del Peru (BCP), Citigroup and Scotia are all heard signing up to Pesquera Exalmar’s $140m 6-year loan ahead of closing this week. That brings in a total of 6 banks, including leads HSBC, Santander and WestLB. The Peruvian fishery is offering a margin of Libor+390bp on the senior secured term loan. Banks were able to participate with ticket sizes of $10m-$19.9m for fees of 100bp, $20m-$20.9m for 125bp and $30m-plus for 150bp. The loan is secured by insurance policies and export receivables, and proceeds are going toward capex, working capital and debt refinancing, including a similarly structured $80m loan. The loan will be paid in 16 equal quarterly payments starting in year 2, with a final lump sum on maturity equal to 15% of the entire loan.
Unifin To Sell MXP ABS
Mexico’s Unifin Financiera is preparing to issue up to MXP800m ($59m) in asset-backed bonds in the domestic market. This amount represents an increase from the originally planned MXP400m. The 5-year floater will pay a spread over TIIE. Pricing is expected at the end of November. IXE is leading the transaction, rated AAA on a national scale. It last raised MXP300m 5-year bonds in the domestic market in June 2010.
AMX Makes Statement with EUR-GBP Offering
Taking advantage of a bout of stability and improved sentiment, America Movil (AMX) returned to the euro and sterling markets Monday to raise more than $2bn equivalent, proving that this sector is open to other blue-chip LatAm names at comparatively attractive prices. Petrobras is heard to be in discussions about its own debut in Europe and bankers are certainly pitching other quality names on the idea. This week’s European summit is expected to result in a clear resolution to the Continent’s debt, but clearly has the potential to send markets reeling again. Still, with European corporates facing troubles of their own, bankers are telling investors that LatAm is a good diversification play into growing markets. Yesterday’s deal allowed the Mexican telecom giant to fulfill its earlier promises of maintaining a lasting presence in both markets, while also offering it comparatively attractive funding costs. First emerging with guidance of mid-swaps plus 185bp-190bp, the A2/A/A wireless operator priced EUR1bn ($1.39bn) in 2019 bonds at 99.049, with a 4.125% coupon, to yield 4.268%, or mid-swaps plus 180bp. It also printed a GBP500m ($800m) 2026 tranche at 99.280, with a 5% coupon, to yield 5.007%, or gilts plus 217bp, inside guidance of 220-225bp over. The euro portion drew EUR3.5bn in orders, while the GBP deal saw demand of GBP2bn. Last week accounts had started voicing some interest in an AMX trade as volatility began to subside. This came just weeks after the company had visited investors in Europe via Deutsche. However, new issue premiums of between 30bp-50bp being paid in euros threatened to be a stumbling block for the price sensitive issuer. The borrower was heard focusing instead on relative value, looking at where AMX historically traded against Europeans peers and trying to price inside those levels. For instance, spread differentials with France Telecom’s interpolated euro 7 and 11-year points on the curve had traditionally been about 33bp and 45bp, though t
Eletrobras Submits EDP Bid
Brazilian state-owned power company Eletrobras has officially presented a non-binding offer for the 21.35% of Energias de Portugal (EDP) that Portugal’s government is looking to privatize. The terms of the proposal are confidential. Protugal’s government has indicated there are 6 bidders, though it does not disclose names. Officials at Cemig have said they were discussing a bid with EDP. Germany’s E.ON and China Three Gorges are also thought to be bidding. Such an acquisition would mark an international shift for Electobras, allowing it to enter the European and US markets.
Colombian Mayors, ETB Strike Telecom Pact
Mayors for the Colombian cities of Bogota, Medellin and Cali have struck an alliance of sorts between their three municipally-controlled telecom companies. Under a signed memorandum of understanding Telecomunicaciones de Bogota (ETB), UNE EPM Telecomunicaciones, the telecom unit of Empresas Publicas de Medellin, and Cali’s government-owned utility Emcali, will join forces to “seek mechanisms” of cooperation to strengthen the companies’ service and infrastructure, according to the document. The mayors plan to create a working group staffed with telecom company presidents, their aides and telecom specialists to further define the details of the agreement, a potential first step towards a resolution of ETB’s long search for investment partners. Earlier this year, Bogota aimed to sell its 88% stake in ETB, but the plan was dashed by a city council vote in July rejecting the idea. ETB has long sought alternatives to finance its expansion, including partnerships with several domestic and foreign candidates such as Emcali, Brazil’s Oi and even Korean investors.