Nestle’s Ecuadorean unit plans to raise $74m through a 4-tranche accounts receivable securitization, according to a report from Fitch subsidiary BankWatch Ratings del Ecuador, which assigns a AAA domestic rating. In what would be its second such transaction, the food products company plans a $20m 3-year 7.25% coupon tranche, a $15 5-year 7.75% tranche, a $35m 7-year 8.25% piece featuring a 1-year grace period, and a $4m 7-year subordinated slice paying 8.75%. The deal is guaranteed by future sales in Ecuador and follows a $70m ABS in 2008. There is not yet a timetable for the deal, as it has not been approved by regulators.
Category: Regions
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Popular Issues COP Bonds
Colombia’s Banco Popular issued COP300bn ($163m) in local bonds in 4 tranches, all priced at par. A 1.5-year piece pays IBR plus 1.10% to yield 4.19%, a 2-year piece pays IBR plus 1.20% to yield 4.29%, a 3-year tranche pays IBR plus 1.40% to yield 4.50% and a 3-year tranche pays IPC plus 2.64% to yield 4.98%. Total demand was COP469bn. Proceeds will be used for working capital. The notes are rated AAA and the bank lead the sale itself.
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Chavez Nationalizes Owens-Illinois
Venezuelan president Hugo Chavez announced he will nationalize the local operations of US-based glass packaging maker Owens-Illinois, but the company says it has not heard directly from the Venezuelan government. It adds that these operations account for under 5% of its global segment operating profit. The operations include 2 plants that employ more than 1,000 people.
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Peru Fish Anchors IPO For a Week
Peru’s Pesquera Exalmar expects to IPO on November 4, instead of Thursday as initially planned. The fishmeal and oil producer is waiting a week to accommodate international buyers needing to complete regulatory formalities, according to a source close to the transaction. Exalmar plans to sell 57.5m primary units and 54.4m secondary to both domestic and international investors. Exalmar does not indicate a value or price range, as the level will be set through an auction. It says in a prospectus that the sale should raise more than $100m. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint in Peru’s southern coast. Santander, Citi and Interbank are managing the sale, set to be the first Peru IPO since Interbank holdco Intergroup sold shares in 2007.
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Alfa Seeks Loan For Eastman Purchase
DAK Americas, a unit of Mexican conglomerate Alfa, is acquiring Eastman Chemical’s polyethylene terephthalate resins business and related assets and technology of its Performance Polymers segment for $600m. Enrique Flores, director of corporate communications at Alfa, says the company is in talks to obtain a 3-year bullet credit facility to finance the acquisition. Terms have not been set and Flores declines to disclose which banks Alfa is talking to, saying only that the loan is likely to be syndicated due to the size of the transaction. The deal includes 3 petrochemical plants in South Carolina. Alfa estimates that the business generated revenue of $405m in H1 2010. Carlos Peyrelongue, equity analyst at Bank of America Merrill Lynch (BAML), says that the price is fair and potential synergies could make the deal non-dilutive. Martin Gonzalez, equity analyst at Mexico-based Invex, says the acquisition will strengthen Alfa’s polyester business while expanding its presence in North America. The deal is expected to close by year-end. BAML advised Eastman. Flores declines to say what financial advisors Alfa worked with.
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Banobras to Issue up to MXP7bn
Mexico’s Banobras is expected to issue up to MXP7bn in 4 year bonds today, rated Aaa by Moody’s on a national scale. The rating is based on the bank’s status as a government-related issuer. Investors expect the bonds to price flat to TIIE – 4.87% Monday – which they say is fair for the credit. Banobras provides financing for states and municipalities, specializing in infrastructure projects. Banamex is the bookrunner.”
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CFE Looks to Syndicated Loan Market
Mexico’s CFE is looking to raise a syndicated loan, according to market participants, who expect it to be pre-funding for 2011. Mexico’s electricity commission has a $605m loan maturing January 19, according to Dealogic. BBVA, Santander, Credit Agricole, Citi, BNP Paribas and SG were leads on the original transaction, which took place in July 2007. Francisco Santoyo, CFO at CFE, told LatinFinance in September that the company would look to pre-fund for 2011 in order to cushion itself against potential external shocks.
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Bank of Tokyo Names LatAm CIB Head
The Bank of Tokyo-Mitsubishi UFJ has named David M. Gruppo head of LatAm corporate and investment banking, a newly created position. He will report to Randall Chafetz, head of corporate and IB for the Americas. Gruppo has held LatAm corporate and investment banking positions at Goldman Sachs, Morgan Stanley and Santander. Most recently, he has been in various capacities with IBM, including its TJ Watson Research unit.
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Geo Supplier Readies Bond
Maquinaria Especializada, a trust created by Mexican homebuilder Geo for the purpose of leasing construction equipment to the parent, is preparing a dollar bond issue. It plans a $160m 2020 bond, according to a Fitch report assigning a BB minus rating. Santander is heard to be sole lead on the deal, with a roadshow starting Wednesday and continuing into early next week. The rating is linked to Geo’s BB minus, Fitch says, “as Geo is responsible for all payments under an unconditional and irrevocable service agreement as well as any termination fees in the event of default and/or termination of the agreement.” Geo sold $64.6m in construction equipment to Maquinaria Especializada, and has a 10-year agreement with the trust to lease it back, Fitch says. Geo had previously planned to monetize the construction assets, then part of the Geo Maquinaria unit, through transactions in the Mexican domestic market. It made preliminary filings on a certificado de capital de desarrollo before opting for a more traditional ABS.
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Interacciones Targets MXP 3-Year
Banco Interacciones is looking to issue up to MXP1.5bn in 3 year bonds by December, CEO Gerardo Salazar tells LatinFinance. Bookrunners have not been mandated and no guidance provided. The bank is only doing a Mexico roadshow, but will look to go international for next year’s bond issues, adds Salazar. The notes are rated Ba1/A1.mx by Moody’s, and will be issued under a senior debt program of up to MXP10bn. Grupo Interacciones specializes in sub-national and public infrastructure financing in Mexico. It is also looking to issue $2bn equivalent of covered bonds in local and international markets, and $280m of subordinated debt in the next 4 years, according to Salazar.