Category: Regions

Mexican conglomerate Alfa Friday signed a $600m 3-year syndicated loan, according to bankers with knowledge of the transaction. Credit Suisse and HSBC are the leads on the transaction, which pays 300bp over Libor, linked to a leverage grid. Participation is heard to have come from 16 banks, with the deal almost 2x oversubscribed. Orders were received at the MLA level from Inbursa, Santander, ING, Credit Agricole and Bancomext. At the arranger level Scotia, Banco de Chile, Banorte and Bank of America participated. At the manager level Bank of Tokyo Mitsubishi, Bladex, Mizuho and Wells Fargo made commitments. The deal is to back the $600m purchase of Eastman Chemical assets in the US. Alfa’s purchase of Eastman’s polyethylene terephthalate resins business and related assets and technology of its Performance Polymers segment was done by Alfa unit DAK Americas. On the M&A, BAML advised Eastman while HSBC worked on the buyside. Fitch downgraded Alfa subsidiary Grupo Petrotemex to BB (stable) from BB+, including notes issued by DAK, amid fears over leverage incurred in the purchase.

Mexico-based chemical company Mexichem says it is acquiring US-based plastic compounding business AlphaGary for $300m in cash. The seller, Rockwood Holdings, will use proceeds to pay down debt. A Mexico-based equities analyst who covers Mexichem says the deal is good, as it will bring synergies. He says the deal is valued at around 7.0x-7.5x Ebitda, in line with the prices Mexichem has paid for other acquisitions. The deal is expected to close in Q1 2011. Mexichem, which generated $2.2bn in 2009 sales from chemical, resin and plastic items, told LatinFinance in May that it was evaluating targets in Europe, the US and LatAm. Mexichem did not return calls for comment. Its CFO Armando Vallejo Gomez told LatinFinance earlier this year that the company plans to keep acquiring companies until it becomes a world leader in the products it sells. To reach that goal, the chemical, resin and plastic items conglomerate planned to hunt for sizable foreign acquisitions. Vallejo aims to turn Mexichem into the world’s largest integrated production chains of both fluorine and chlorine-vinyl for refrigerant gases, PVC pipes, and other construction material. Mexichem generated $2.2bn in 2009 sales from chemical, resin and plastic items. It was also shopping around Europe and LatAm for a purchase. Mexichem was also considering launching a NYSE IPO to finance its acquisition campaign.

Following last week’s closing of a MXP4bn certificado de capital de desarrollo (CCD) transaction, Mexican specialty finance institution Navix is planning to securitize the loans in the CCD trust. The securitization could come as soon as the second year of the 10-year deal, Navix CEO Gonzalo Gil White tells LatinFinance. Additional transactions, for a $100m equivalent minimum, would follow every 12-18 months. The CCD, which will focus only on debt investments, will make loans to suppliers of Pemex and the CFE. “The opportunity was very evident to us because we have been financing companies from this sector for an extended period of time,” White says of the CCD. He points to an estimated Pemex capex budget of around $30bn per year through 2019. CFE also plans to spend $60bn over the next 4 years. White says Navix is using the CCD market as a tool to offer its funding on a larger scale and channel money from Mexico’s liquid pension funds into much needed infrastructure. “This was a very efficient way to allow institutional investors to participate in a sector they don’t otherwise have regulatory ability to invest in, and mitigate risk by structuring investment as a senior secured loan,” he says. Five Afores, a private pension fund and a few other private investors participated in the deal, in which Navix is co-investing MXP1.2bn of its own resources. The loans – mostly working capital facilities – can range from MXP10m-MXP700m in size. White says many of the suppliers are middle-market companies, which in general are underfunded by the banking sector and through less efficient products such as factoring and trade finance. Investors will receive interest from the loans and a portion of the loan fees, with Navix getting the remainder of the commissions and an administration fee, according to the documentation. Navix estimates an 18% return for investors. Banamex and Actinver managed the deal. White says another CCD might be possible in the future, but at the moment Navix

Moody’s has downgraded the ratings of Mexico-based telephone company Maxcom’s corporate family and senior unsecured debt to Caa1 from B3. The outlook is negative. The cut was prompted by Maxcom’s continued weak operating performance due to adverse economic conditions in its target markets as well as an intensifying competitive environment. The negative outlook reflects Maxcom’s liquidity situation, which is dependent on reduced levels of capex of about 50% (from $60m in 2010 to $30m expected for 2011, as per management’s guidance). Further ratings downgrade would be likely if weak revenues and Ebitda push Maxcom’s cash balance to below $20m, Moody’s says. Maxcom said in August it was evaluating strategic alternatives. Barclays is advising on a potential sale.

Mexico’s Exploraciones y Perforadora Central is planning to buy back 2 series of export ship financing bonds, it says. It is seeking to retire the bonds, using cash on hand, before the end of the year to avoid a 2011 accounting charge, says a banker on the deal, noting the two series total $46m outstanding. The drilling service provider to Mexico’s oil industry is offering holders of $23m in outstanding 5.24% of 2018 bonds $1,140.79 per $1,000.00 principal. Accepting holders of $23m in outstanding of 4.92% of 2018 bonds would receive $1,127.96 per $1,000.00 principal. It plans to fund the buyback with cash on hand, according to the banker. Citi is managing the offer, which expires today.

Mexican micro lender Banco Compartamos has extended to December 23 from December 16 its offer to swap shares in is operating company for shares in its holding company, it says. Compartamos is aiming to get consent from holders of more than 95% of its shares in order to delist and change its listing to the Compartamos SAB holdco, a move which will simplify its structure and facilitate expansion in Mexico and abroad. In the offer, shareholders in the operating company will receive 4 shares in the holding company for every share they own in the operating company. In order for the offer to take effect, the holding company must receive at least 85% of the shares in the operating company. If more than 95% of the operating company’s shares are tendered, it will delist. Compartamos says the extension allows holders more time to comply with their administrative processes. It does not say what level it has reached so far. The bank’s management will not change, Compartamos says, adding that the deal will not result in any cash proceeds either for the bank or the holding company.

Concesionaria Mexiquense (CONMEX) on Wednesday said it signed a 16-year MXP2bn contract for a subordinated loan. The loan to the subsidiary of OHL Mexico, a transport infrastructure concession operator, is being provided by Banco Nacional de Obras y Servicios Publicos, Sociedad Nacional de Credito and Institucion de Banca de Desarollo. The loan will be used to complete Phases 2 and 3 of the Mexico City Beltway. The concession was awarded to CONMEX by the State of Mexico to design, construct and operate a 155 km toll road in Mexico City’s northeast metropolitan area. The project is 44% complete, with 60km in operation. OHL Mexico has six toll road concessions, three of which are in operation, one is under construction and two are in the pre-construction phase. It also has a 49% stake of the concession company of the airport of Toluca. The company did not disclose the terms of the loans and did not return calls.

US-based shipping company FedEx says it is buying Mexican express package delivery company MultiPack for an undisclosed price. MultiPack operates in all 31 Mexican states and the capital. Founded in 1939, MultiPack currently operates 48 distribution centers, 13 warehouses and more than 500 retail outlets across the country. JPMorgan is acting as financial advisor to FedEx and Credit Suisse is advising MultiPack.