Maxcom has taken itself off the market, according to Mexico-based bankers familiar with the situation. The Mexican telecom provider had retained Barclays to sell itself, but suffered from a lack of interested buyers, according to bankers in Mexico and New York. Maxcom released disappointing earnings results for Q3 2010, with an MXP80m loss (up from an MXP148m loss for the same period in 2009), and will likely seek to improve its numbers before attempting another sale. Maxcom says it is not working with Barclays, but declines to comment on whether it had been working with the bank previously. Udi Margulies, MD of investment banking at Barclays, declines to comment.
Category: Regions
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Xignux Selling Iron Castings Unit
US-based Revstone says it has agreed to acquire Mexico-based industrial manufacturer Xignux’s Tisamatic subsidiary for an undisclosed amount. Tisamatic produces high precision iron castings for the automotive sector, in addition to home appliances, cast iron connections, and soil pipes. It produces more than 60,000 metric tons of vertical molding and soil pipe. Its 133,000 sq. ft. facilities include 4 electric furnaces, 5 shot blast machines, 6 shell machines, 3 centrifuge machines and other related casting equipment. The transaction is under due diligence and is expected to close in the first half of the year. A Revstone spokesman declines to comment on deal value. However, he does say that Revstone is interested in making more acquisitions in Mexico. On January 12, Revstone announced it was acquiring a magnesium die casting facility in Chihuahua from Compass Automotive for an undisclosed price. Revstone did not use financial advisors.
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Republic Gold Seeks Financing for Bolivia Project
Australian miner Republic Gold is working with Bolivian securitization specialist BDP Sociedad de Titularizacion to raise up to $180m equivalent in a BOB-denominated structured note. The securitization will be used to finance the development of the Amayapampa gold project in Bolivia, BDP general manager Jaime Dunn tells LatinFinance. Republic had previously announced it would need $136m to bring the project to production. The structured note, Dunn says, will have a tenor of 10.4 years and will have a partial capital guarantee. The parties are still seeking the necessary authorizations from Bolivian regulators to finalize terms of the arrangement. Dunn says Republic expects to complete funding in 6 months.
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Grupo E Fibra Delayed
Grupo E has delayed a deal to issue Mexico’s first Fibra, or REIT transaction, expected to price Thursday. A banker on the deal says more formal information will be announced today. The Grupo E deal had been expected to sell 230m certificates with a projected range of MXP21-MXP23 each. The vehicle, known as Fibra Uno, consists of 12 industrial, commercial, office, and mixed use properties located throughout Mexico and totaling 484,000 square meters. Grupo E consists of 60-70 owners, led by the El-Mann and Attie families. Proceeds from the sale will be used to fund the acquisition of 5 additional commercial and mixed-use properties totaling 189,000 square meters. In accordance with Mexican regulations, the trust will distribute 95% of its income. The transaction has been awaited ever since regulators approved the asset class for sale in Mexico’s equity market in 2010. Santander is lead coordinator in Mexico, with BAML and UBS as global coordinators and Mexican bookrunners and Protego as a Mexican bookrunner.
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Nexxus V Reaches First Closing
Mexico-based private equity shop Nexxus Capital has made its first closing of $70m on its Nexxus V fund, says director Roberto Terrazas. He expects to raise an additional $50m-$70m before a final closing in March. Fundraising efforts are targeting international institutional investors, Terrazas says. A previous fund, the Nexxus IV CCD trust, closed with $220m in October. Nexxus’ funds acquire minority or majority stakes in Mexican mid-market companies.
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Ecuador Upgraded by Moody’s
Moody’s has upgraded Ecuador’s ratings to Caa2 from Caa3. The outlook is stable. “Ecuador should be able to secure sufficient financial support from China, the Andean Development Corporation and the Inter-American Development Bank and to access local funding from the Ecuadorian Social Security Institute to cover most of its funding needs,” the agency says. It adds that Ecuador’s government has expressed a commitment to honor its $650m global 2015 bonds.
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Mexico Prices MXP25bn Bond
Mexico has received over MX60bn in demand for the MXP25bn 6.50% 2021 syndicated bond it issued on Tuesday, according to bankers on the deal. The 6.50% coupon priced at 92.39 to yield 7.44%. Almost half the demand came from Afores, with insurance companies, banks and private banks also participating. Alejandro Diaz de Leon, head of public credit for Mexico’s Hacienda, says he is satisfied with where the bond priced, given recent market volatility. Given the volatility in the market recently it was tighter than last year’s 10 year bond in February of last year. HSBC, Santander, BBVA Bancomer and Banamex are joint bookrunners on the deal. Last year, Mexico sold MXP60bn at 5, 10 and 30-year maturities, kicking off with a MXP25bn 10-year in February.
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ICA 10-Year Prices in Line
ICA, the Mexican infrastructure construction company, raised $400m in a 10-year NC5 yesterday. The 8.900% coupon priced at 98.545 to yield 9.125%, in-line with guidance in the low 9 area. The offering had a book of close to $800m, according to a banker on the deal. ICA had originally been heard going out with a perp, but changed tack after receiving a tepid response. A New York-based EM-investor says the market had been comparing ICA to Cemex, as both are considered plays for Mexican construction. But ICA had been expected to price through Cemex, since it is considered a stronger credit. Cemex has a 2020 trading at around 8.50 – 8.70. “I think they shot themselves in the foot a bit with the failed perp,” the investor says. Another New York-based investor who passed on the deal says ICA’s high leverage made the issue less compelling. BAML, Morgan Stanley and Santander are leads on the deal. ICA is rated Ba3/BB minus. Proceeds will be used to repay outstanding secured debt and general corporate purposes.
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BNP Opening Colombia Bank in April
BNP Paribas plans to officially open a bank in Colombia in April, the French bank’s head of LatAm Louis Bazire tells LatinFinance. A banking license is required to trade the Colombian peso, which BNP will do along with offering FX swaps and derivatives. BNP will use the opening to sound out a possible strategy for lending to local companies in pesos. Bazire says BNP will need to have confidence in the currency before considering lending long term in pesos. He adds that Colombia is a good investment opportunity and does not view it as overbanked. “Our timing is good,” says Bazire. BNP already has 40 people in its Colombia rep office. It offers wholesale finance and specialized retail products like consumer credit and insurance. The Colombia bank is part of a number of regional initiatives planned for this year. “We’re growing our platform everywhere,” says the senior banker. Bazire says BNP plans to open a Brazil equity brokerage as a stepping stone towards a primary equity business. And in Mexico, the bank is starting a Sofom to gain access to the peso market. Bazire notes that LatAm and Asia are the fastest growing parts of the bank, though he concedes that the region still yields just 3% of global revenue. BNP aims to double LatAm revenue by 2013, says the banker.
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Colombia Rates Kept at 3.0%
Colombia’s central bank kept its rate unchanged at 3.00%, in line with market expectations. It says that inflation, at 3.17%, while higher than expected, is still in the middle of the target range. Celfin says inflation spiked in December and that January may see similar numbers. But Celfin says the jump in inflation is being caused by supply side factors that would not be affected by a rate increase. Morgan Stanley says that stable but modest growth and a strengthening currency should keep inflation at bay and allow the central bank to remain on hold through the year.