Australian miner EnviroGold says it plans to increase its stake in Dominican Republic-based gold project Las Lagunas to 100% from 92.5%. It does not disclose the price, which will be paid in 3 tranches over 2 years. The company also secured financing of AUD37.5m from Macquarie to finance the project’s development, dependent on a successful acquisition of the remaining stake. Terms of the financing are not being disclosed and company officials could not be reached for comment.
Category: Regions
Posted inDaily Brief
CFE to Launch $2bn Syndication
Mexico’s CFE is launching syndication of a $2bn 3.5-year term loan at meetings Thursday in New York and November 8 in Mexico City, say bankers. The loan will pre-fund a $1.7bn revolver maturing in May 2011. BAML, BBVA, BNP Paribas, Bank of Tokyo, Citi, Intesa, RBS and Santander are bookrunners on the deal for Mexico’s federal electricity commission. Pricing is heard at 130bp over Libor, according to bankers away from the deal. Pemex recently priced a 3-year tranche on a $3.25bn loan at Libor plus 125bp and a slight pickup had been expected for the extra duration. Terms and fees are still being discussed, so final deadlines for commitments and signing have not been set, say bankers. However, a banker on the deal says CFE must close the transaction before December 9, as this is when the rate on the outstanding facility re-sets. Commitments would be expected a couple of weeks before then, in time for signing by that date.
Posted inDaily Brief
Kimberly Clark Returns to MXP Market
Kimberly-Clark de Mexico, the paper and consumer products company, is expected to issue up to MXP4bn via Banamex and JPMorgan in the domestic bond market in a dual tranche deal. According to a banker on the deal, it will consist of a 5-year bond priced over TIIE, and a 10-year fixed rate issue. The bonds are rated AAA on a local scale. Televisa, also rated AAA on a domestic scale, issued a 10 year bond at Mbonos plus 135bp 3 weeks ago. Proceeds will be used to refinance debt and for capex. The issuer last came to the local market in October 2009, when it issued MXP2.7bn in a dual tranche 5-year floating and 10-year fixed rate deal, via Banamex and HSBC. That deal was heavily oversubscribed, according to bankers on it.
Posted inDaily Brief
Japanese Buy Aguas Nuevas
Japan-based trading company Marubeni and the Innovation Network Corporation of Japan (INCJ) have bought Chilean water utility Aguas Nuevas from Santander, according to a stock exchange filing. According to a report in a local newspaper, Marubeni and INCJ each paid $124m, for a 50% stake in the company. Santander and Aguas Nuevas did not return calls for comment. Marubeni did not return an e-mail seeking comment.
Posted inDaily Brief
Vitro Offers Exchange
After months of trying, Mexico’s Vitro has launched an offer to bondholders, this time with the support of its largest creditor, Fintech Advisory, it says. The glassmaker is offering cash and new securities to holders of its $300m in 8.625% of 2012 bonds, $216m in 11.750% of 2013s and $700m in 9.125% of 2017s. The move, which follows past proposals that have been rebuffed by creditors, is intended as a step toward achieving a debt restructuring carried out under Concurso Mercantil, Vitro says. The cash buyback portion offers holders up to $100m at a price of $500-$575 per $1,000 in principal, with the price to be reached through Dutch auction. Alternatively, holders can opt to exchange old bonds for new ones, receiving – for each $1,000 principal – $562 in new 8.000% of 2019 bonds, $66 in 10.500% of 2015 mandatorily convertible debentures, and a cash payment equal to accrued interest. An additional cash payment would come from any funds left in a trust used for a cash buyback that remains after the repurchase is complete. Both offers expire December 1. Vitro says creditors can expect a 68%-73% recovery. Rothschild is Vitro’s financial advisor. Vitro says no dealer manager has been retained for the offers. Vitro defaulted in 2009, as the global recession hurt revenue and the company suffered more than $300m in derivative losses.
Posted inMagazine
Equity: Issuers Follow Petrobras
With Petrobras’ $70 billion capitalization out of the way, other LatAm equity issuers are cleared for takeoff.
Posted inMagazine
Best Bank – Puerto Rico
Puerto Rico has been suffering a recession for more than four years. Several banks have collapsed, unemployment has soared and bankruptcies have increased.
Posted inMagazine
Colombia, Mexico Boutiques Defend Turf
The growth of boutiques in Mexico and Colombia has slowed. Pan-regional players continue to stick to their guns.
Posted inMagazine
Mezzanine Financing Comes to LatAm
Mezzanine financing is not as widely available from private equity firms in LatAm as in other emerging markets. This could start to change soon as both sides learn of the benefits.
Posted inMagazine
Best Bank – Mexico
Mexican retail banks are known for making customers pay through their noses.