Banco de Credito Del Peru (BCP) has received commitments from creditors holding $114.4m of outstanding 6.95% 2021s to exchange these bonds for recently issued 6.875% 2026 fixed-to-floating rate notes. There are $120m of outstanding 2021s. Accepting holders get $1,078.38 worth of new bonds per $1,000 of the old ones, including a $30 early acceptance premium. Remaining holders have until October 24 to swap at $1,048.38. Creditors have 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% per year after year 10. Bank of America Merrill Lynch and Morgan Stanley ran the initial sale and are also managing the exchange offer. The 2021 notes were originally issued in 2006.
Category: Regions
Arca Continental Prices MXP Bond
Arca Continental raised MXP3bn ($226m) in the Mexican bond market Wednesday. The bottler priced a MXP2bn 10-year fixed rate bond at 7.63%, or Mbonos +130bp and a MXP1bn 5-year floater at TIIE+ 25bp. Pension funds took part in the fixed-rate deal while private banking and investment funds participated in the floater. BBVA Bancomer, Bank of America Merrill Lynch and HSBC managed the deal, rated AAA on a local scale. The issuer last came to the Mexican domestic market in November 2010, when it priced a MXP3.5bn fixed and floating rate deal via HSBC. On that occasion, the borrower paid TIIE + 29bp on a 5-year and Mbonos +114bp on a fixed-rate 10-year.
Banco de Chile Heads to Mexican DCM
Banco de Chile has filed a shelf to issue up to MXP 10bn ($752m) of debt in the local Mexican market. Banco de Chile will be the third Chilean issuer to tap the Mexican domestic market following similar moves by Banco de Credito e Inversiones (BCI) and Chilean miner Molymet. “Chilean issuers are turning to the Mexican market because it is attractive and offers an alternative for issuers to finance themselves,” says a banker managing the sale. Banamex and JPMorgan are leads. Timing and tenor have yet to be determined.
Court Clears Way for Kirin Brazil Entry
A Brazilian court has lifted an injunction blocking the sale of a majority stake in brewer Schincariol to Japan’s Kirin, says a lawyer on the deal. In a matter of days, the Japanese brewer should be able to assume control of the 50.45% stake purchased for BRL3.95bn ($2.25bn) in August from a holding company owned by the brothers Adriano and Alexandre Schincariol. Cousins Jose, Daniela and Gilberto Schincariol – owners of 49.55% – had pushed through the injunction, alleging negotiations with Kirin were handled improperly, and they could still appeal the decision in a higher court. In the deal with Kirin, Adriano and Alexandre are to remain with the company, as executives, for at least the next 36 months. At the time of agreement, Kirin said the deal represented a 15.7x EV/Ebitda price over the 12 months to March 2011. Analysts found the level slightly expensive – or at least higher than competing bids heard at BRL2.2bn and BRL1.8bn – and thought it represented a premium for Kirin to enter a growing and lucrative market. Kirin is financing the deal almost entirely through a combination of existing credit lines and pre-approved bridge loans through Japanese banks. Kirin was advised by Citi, TozziniFreire Advogados and The Tokyo-Marunouchi Law Offices. The Schincariol brothers were advised by BTG Pactual and Mattos Filho.
Canacol Names CFO
Canacol Energy has named George Gramatke as CFO, replacing Brian Hearst, who had been in the role since 2009. The E&P operation is now developing an exploration program in Colombia, and has mainly relied on private fundraising. Its most recent deal was a CAD57m ($58m) private equity capital raise in March.
Arca Continental MXP Price Talk Heard
Mexican bottler Arca Continental is looking to pay TIIE+25bp on a 5-year floater and Mbonos +125bp on a 10-year fixed rate bond, according to bankers away from the deal. Arca plans to raise up to MXP3bn ($224m) today or later in the week through a bond being led by BBVA Bancomer, Bank of America Merrill Lynch and HSBC. The rating is AAA on a local scale. The issuer last came to the Mexican domestic market in November 2010, when it priced a MXP3.5bn fixed and floating rate deal via HSBC. On that occasion, the borrower paid TIIE+29bp on a 5-year and Mbonos+114bp on a fixed-rate 10-year.
Hipotecaria Total Reopens RMBS, Again
Mexico’s Hipotecaria Total has reopened for the second time its 2041 RMBS for MXP1.5bn ($112m) at a 4.50% yield or Udibonos+287bp. The bonds are structured by Hipotecaria Total and backed by credits from government lender Infonavit. Proceeds are passed through to Infonavit and will be used for lending. The original December 2010 issuance came with a MXP1.5bn size, a 5.23% yield and a spread of Udibonos+ 270bp. Its first reopening took place in April this year when it issued MXP2.5bn at a 5.15% yield or Udibonos+215bp. BBVA Bancomer and HSBC managed the sale, rated AAA on a local scale.
Santander to Retap MXP Bonds
Santander aims to reopen its 2016 bonds for MXP2.2bn ($164m) as soon as next week, says a banker on the deal. The original MXP2.8bn issue was priced in September at TIIE+ plus 50bp. The bonds are rated AAA on a national scale. Proceeds of the self-led deal will be used for general corporate purposes.
Bimbo to Scoop up SL’s Iberian Brands
Mexican breadmaker Bimbo has agreed to buy Sara Lee’s fresh bakery business in Spain and Portugal for EUR115m – an amount that will be financed through cash on hand and existing credit lines. Apart from the fresh bakery brands in Spain and Portugal, the purchase also includes seven manufacturing facilities. The business generated net sales of $408m in fiscal 2011 and employs some 2,000 people. The seller has recently under taken a restructuring aimed to improve labor costs and its supply chain. According to Bimbo, the business is expected to generate sales of EUR290m plus and adjusted Ebitda of EUR17m after the full effect of the restructuring takes place. Atlas Strategic Advisors were employed as financial advisors to Grupo Bimbo, while Cleary Gottlieb served as legal advisors with assistance from Garrigues and Lerroux & Fernandez-Pacheco on Spanish and Portuguese matters. Sidley Austin in Chicago and Baker & McKenzie in Spain were retained as advisors for Sara Lee.
AMX Starts Telmex Tender
Mexican telecom giant America Movil kicks off today its tender offer to buy the Telmex shares it already doesn’t own after receiving regulatory approval to move ahead with the operation. This comes after the company wrapped up fixed-income investor meetings in Europe late last week via Deutsche Bank, suggesting it may try its luck in the euro bond market if conditions are ripe. Indeed, markets Monday certainly adopted a risk-on stance after Germany and France showed a united front and pledged to put together a plan to support European banks and tackle the continent’s debt crisis. DCM and EM debt trading desks in New York were closed Monday for Columbus Day, but US stocks leapt a good 3% and AMX watched its shares bounce a 4.2% on the Nasdaq. In August AMX said it would spend up to MXP76.34bn ($6.51bn) to buy back Telmex stock and was offering MXP10.50 per share for the approximately 7.2m shares. At the time, the company calculated that the offer represented an 11.1% premium over the average share price of the 30 days prior to announcement. The telecom has sufficient cash on hand to fund the tender, which is expected to expire on November 11, but it has also been raising debt to cover a portion of the operation. It was last in the market in late August when it sold a $2bn 5-year bond and a $750m retap of its 2040s a week ahead of a September rush that never happened. The company most recently tapped European investors in late August via Credit Suisse, with a CHF270m ($350m) 2016 that came at a reoffer price of 99.775 to yield 2.039%, or mid-swaps plus 86bp. Deutsche Bank, HSBC and BNP Paribas, brought AMX to the European markets in June 2010 with EUR/GDP bond transactions. At that time, it priced a EUR1bn 2017 at 99.276, with a 3.750% coupon, to yield 3.870%, or mid-swaps plus 135bp, as well as a EUR750m 2022 at 98.902, with a 4.75% coupon, to yield 4.873%, or mid-swaps plus 175bp.It also raised GBP650m through a 2030 that was priced with a 5.750% coupon, to yield 5.