Peru’s Pesquera Exalmar has priced a PES341m ($120m) IPO, the country’s first since 2007, boosting hopes for other Andean issuers. The fishmeal and oil producer sold 57.5m primary and 14.2m secondary shares at PES4.75, according to a banker on the sale. The 71.7m unit total falls short of a 112m maximum, but ECM bankers and investors are optimistic more Peru issuance should follow, particularly in the consolidating fishery sector, from which Exalmar is the third to list. There had been no price range given for the sale, conducted through an auction rather than through a bookbuilding process, with the market roughly expecting a $100m-$200m size. “Many others in the sector are evaluating the possibility of listing,” says Jean Pierre Fournier, equity portfolio manager at Integra AFP, which has $800m in assets under management. “There is much more efficiency in the sector, following the revised quota system, which has also allowed for better margins and for consolidation led by the bigger companies,” he tells LatinFinance, referring to a 2009 change that restructured catch limits. Demand for the float came from Peru, Colombia, Chile, the US and Europe, bankers on the deal say. This follows a roadshow to the same locations. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint on Peru’s southern coast. Santander, Citi and Interbank managed the sale, the first Peru IPO since Intergroup floated in 2007, according to Dealogic.
Category: Regions
Daimler Mexico to Issue Domestic Bond
Daimler Mexico, the car manufacturer, is planning to issue up to MXP1bn 3-year bonds which investors expect to price at 40bp over TIIE next week. The bonds are rated AAA on a national scale, with Bancomer and Banamex leading the transaction. Proceeds will be used for working capital.
Fitch Upgrades KCSM
Fitch has upgraded Kansas City Southern de Mexico and its senior notes to BB from BB minus with a stable rating outlook. Fitch attributes its upgrade of the railway transportation service provider to the company’s recovery and solid operational performance in the last year. Fitch adds that the company is well positioned to benefit from the improvement in the Mexican economy and cross-border trade with the US. In the first 9 months of 2010, KCSM’s revenues were $582.4m, a 33% increase over the corresponding period in 2009. Fitch expects KCSM to generate approximately $792m and $884m in revenues during fiscal year 2010 and 2011, respectively. Fitch’s main concerns about the company are its exposures to fuel cost volatility and other industry-related risks, such as revenue volatility and high operating leverage and the potential for further weakening of the US economy, which would also affect the Mexican economy. Under that scenario, leverage could rise to a level inconsistent with the current ratings, adds Fitch.
Kimberly-Clark Tees Up MXP Bond
Kimberly-Clark de Mexico, a paper and consumer products company, expects to issue up to MXP4bn in a dual tranche 5-year floating and a 10-year fixed rate via Banamex and JPMorgan next week. The bonds are rated AAA on a local scale. Investors expect the 5-year to price at TIIE+35bp and the 10-year at Mbonos+110bp. Proceeds will be used to refinance existing debt and for capex.
Mexico Debt Pipeline Refills
NR Finance, the Mexican subsidiary of the financing arm of Nissan-Renault, is coming to market November 17 for up to MXP3bn, via Banamex and Scotia. The 3-year bonds pay a spread over TIIE and are rated AA+ on a national scale. The following week, car leasing company Unifin will issue up to MXP400m in 5-year bonds that will pay a spread over TIIE in a deal lead by Ixe. The bonds are rated AAA on a national scale. Proceeds will be used to repay debt and working capital. Scotiabank and Banco Interacciones are also expected to come to the bond market at the end of November, according to regulatory filings. Interacciones is looking to issue up to MXP1.5bn in 3-year bonds by the end of the month. The notes are rated Ba1/A1.mx by Moody’s. Scotia is re-opening a 5-year bond, issued in October for MXP2.312bn 5-year at TIIE+40bp. It is looking to add MXP830m at the same spread to pay for general corporate purposes, says a banker at Scotia. Elsewhere, CFE will issue a dual tranche, 4-year floating and 10-year fixed the week after next. Investors expect the Mexican electricity authority to price at 30bp over TIIE for the 4-year and 120bp-130bp over Mbonos for the fixed tranche.
Travelers Buys Brazil Insurance
Travelers, the US property and casualty insurer, will acquire a 43% stake in J. Malucelli Participacoes from parent company Parana Banco for $370m. Parana will continue to hold 57% of the surety insurance subsidiary, though Travelers has the option to increase its stake to 49.9% within 18 months for the same price it paid for its initial stake, indexed to CDI. The deal implies a pre-money valuation of BRL925m for the unit, according to a spokesman. Greenhill advised Travelers, while Malucelli used BTG Pactual, the spokesman adds. According to the company, Travelers’ investment in newly issued shares will significantly increase J. Malucelli’s capital level, allowing it to fund further expansion. Management at Malucelli will stay in place, though Travelers will take several board seats, according to an investor conference call.
Colombia Reported Not Selling Satena
Colombia will not sell its Satena airline, according to local press and wire reports. Citing comments by General Carlos Montealegre, Santena’s president, and General Julio Alberto Gonzalez, the commander of the Air Force, the government has received offers to acquire the business, which it says is the fourth largest airline in the country by passenger volume. Bogota plans to increase its investment in Satena in order to support the company. Calls to the Colombian Air Force, which is responsible for the airline, were directed to Satena, which did not respond to requests for comment.
Ecopetrol Reported Considering 2011 Float
Ecopetrol is considering raising $6.9bn by floating an additional 9.9% stake, according to Dow Jones. The wire service cites Hector Manosalva, the company’s head of exploration and production. The float could occur next year, depending on the company’s needs. Ecopetrol sold a 10.1% share on the local market in 2007 to raise $3.3bn.
Fitch Ups Bogota’s Outlook
Fitch has improved Bogota’s outlook to positive from stable, after a similar action was taken 2 weeks ago on Colombia’s risk. Fitch has affirmed the BB+ long term foreign currency rating, and the BBB minus long term local currency debt rating of Bogota. This reflects the district’s strong fiscal management, consistent budgetary surplus position, affordable debt, highly valuable assets and strong socio-economic profile. However, Fitch cites high unemployment rates, increasing social and infrastructure needs of a growing population and contingent liabilities regarding pension and retirement payments of employees as potential limitations. The district’s economy, following the same trend as Colombia, remained almost flat in 2009, but growth is expected to reach rates above 4% for 2010 and 2011.
AES Sets Bond Guidance
AES Dominicana is out with official yield guidance of 9.50%-9.75% on a new 10-year NC5 bond expected to price today. The subsidiary of US-based power company AES is looking to raise funds to cover a bond buyback of up to $258m, having launched a tender for its 11.000% of 2015 and 10.875% of 2013. Credit Suisse and Deutsche Bank are managing both the new bond sale and the tender offer.