America Movil (AMX) is heard sounding out Japanese accounts for a potential Samurai transaction with Mitsubishi UFJ-Morgan Stanley and Mizuho. Additional details were not available. A Samurai would follow AMX’s $2bn 5-year bond and $750m retap of its 2040s done earlier this month in which it locked in the second lowest coupon ever achieved by a telecommunications company. AMX issued a CHF270m 2016 bond in August that came with a reoffer price of 99.775 to yield 2.039%, or mid swaps plus 86bp. AMX and the banks said to be involved were unavailable to comment. AMX is rated A2/A/A.
Category: Regions
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Compartamos Upsizes MXP Floater
Mexico’s Banco Compartamos has sold MXP2bn ($144m) in domestic bonds, up from the MXP1.5bn originally planned. The 2016 floating rate bond priced at TIIE + 85bp, in line with 80bp-90bp guidance. Demand reached 1.8x. About two-thirds of the proceeds are destined for the repayment of debt, while the rest will be used for lending. Banamex, Bancomer and HSBC are leads on the transaction, rated AA on a national scale. Compartamos last visited the local bond market in October 2010 when it sold MXP1bn in 2015 bond, paying TIIE + 130bp.
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Exalmar Unveils Margins on Loan
Peru’s Pesquera Exalmar is offering a margin of Libor+390bp on a $140m 6-year senior secured term loan, with commitments due by October 13. Leads are offering fees of 100bp for ticket sizes of $10m-$19.9m, 125bp for $20m-$20.9m and 150bp for $30m plus. There is also an early bird incentive fee of 15bp for institutions that participate within the first 2 weeks. The loan is secured by insurance policies and export receivables and proceeds are going to refinance debt, including a similarly structured $80m loan, as well as capex and working capital. The loan will be paid in 16 equal quarterly payments staring in year 2, with a final lump sum payment on maturity equal to 15% of the entire loan. The deal was launched this week via leads HSBC, Santander and WestLB.
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Mexico Tracks Market for Potential Samurai
Mexico’s fixed-income investor meetings in Japan at the end of August were successful, and may result in a Samurai bond transaction as soon as market conditions permit, according to a person familiar with the sovereign’s plans. A transaction could occur before year-end but may be issued sooner depending on market conditions. “We cannot deny the possibility of a transaction, but we are not sure if it will take place in October, November or December,” the person familiar added. Should Mexico pursue a Samurai it would be looking at JPY30-50bn ($393m-$655m) size with a 2, 3, or 5 year tenor, the person familiar added. Alejandro Diaz de Leon, the country’s public credit head, previously told LatinFinance last month that Mexico intended to build a long-term investor base in Japan and become a frequent Samurai issuer. Initially, Mexico was looking at a 5-year tenor at around $500m equivalent for its potential Samurai. Bank of Tokyo Mitsubishi, Citigroup and Nomura led the investor meetings. Mexico last issued JPY150bn ($1.8bn) of 10-year bond at a 1.51% yield in October.
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Canacol Eyes New Equity
Canadian oil company Canacol Energy, which operates in Colombia, Brazil and Guyana, is likely to tap the equity markets again in the next 18 months. “We would almost certainly raise new equity,” if the company’s current 12-18 month exploration program is successful, Mark Teare, Canacol’s vp of exploration says. A deal could come at any time during that period. Canacol got CAD57m ($58m) from a private equity capital raise in March, in a deal bought by managing banks, Cormark Securities, Canaccord Genuity, FirstEnergy Capital, Stifel Nicolaus Canada, Citi, Mackie Research Capital and TD Securities, Canacol says. Teare spoke at a conference organized by Bloomberg Thursday.
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Interproperties Gets Ba3
Moody’s has assigned a Ba3 rating to Interproperties’ proposed $185m 2023 RegS-only bond, with a stable outlook. Interproperties, the real estate unit of Peru’s Intergroup, is meeting investors in Chile and Peru this week. The notes amortize in equal payments semiannually beginning March 30, 2015. The notes will be fully secured by the unit’s commercial real-estate assets operated by Real Plaza, and proceeds are to fund Real Plaza’s development of new products. IMTrust is managing the sale.
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Oaxaca to Issue MXP Bonds
The Mexican state of Oaxaca plans to raise up to MXP2bn ($144m) in the domestic bond market, according to a regulatory filing. The 15-year bonds will pay a spread over the TIIE. The state is raising funds for infrastructure investment and to repay debt. Interacciones is managing the deal, and Cofinsa is structuring agent.
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Fitch Downgrades Newland’s Notes
Newland International Properties saw Fitch downgrade its $220m of senior secured notes to CCsf Wednesday. The agency cites delivery delays on finished units for the Trump Ocean Club hotel being developed by the borrower in Panama. This comes amid continued uncertainty over the willingness of end buyers to take possession of the units, Fitch adds. As of June 30, Newland held $12.8m in restricted cash, of which $10.5m was slated for a debt service reserve account. “The transaction’s liquidity is becoming more dependent on the timely pace of collections from the closings and future sales to meet ongoing debt-service requirements,” the agency says. Newland International issued the $220m 2014 NC3 bonds in 2007 via Bear Stearns, pricing them with a 9.5% coupon to yield 10.25%.
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Titularizadora Places COP RMBS
Mortgage Securitization specialist Titularizadora Colombiana has sold COP258bn ($138m) of senior RMBS bonds after generating a book that was 1.5x oversubscribed. The 2021 bonds pay up to 6.84%, and are rated AAA on a national scale. The sale also included COP44bn in three subordinated tranches. The bonds are backed by loans originated by Bancolombia and Davivienda. Today, Banco de Ocidente is also scheduled to sell COP300bn of bonds in various tranches with maturities ranging from 3-10 years.
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CFE Raises MXP7bn
Mexico’s Comision Federal de Electricidad (CFE) has raised MXP7bn ($522m) from a reopening of its 2014 and 2020 bonds, seeing more than MXP13bn in demand. The transaction is the first local bond since Mexichem’s MXP2.5bn issuance on September 8, and only the second since August 9. CFE’s 2014 bond paying the TIIE+26bp was reopened for another MXP3.5bn to yield TIIE+25bp, in line with 20bp-25bp guidance. A 7.96% 2020 bond was also retapped for MXP3.5bn to yield 7.62%, or Mbonos+122bp, inside of 125bp-135bp guidance. Demand for the floater topped MXP9bn, while the book for the fixed tranche swelled to MXP4bn plus, according to bankers on the deal. “This transaction was very well-bid and will help set a fresh benchmark going forward,” says one. CFE is raising the funds for general corporate purposes. Banamex, and BBVA Bancomer and ING managed the sale, rated AAA on a national scale.