Sare Holding has priced a MXP930m equity follow on at a 1.6% discount to Wednesday’s MXP3.10 close. The Mexican homebuilder sold 305m shares at MXP3.05 each. Demand topped MXP3bn, according to a banker on the sale, including about MXP1bn from private banking, MXP900m from international institutional investors, and MXP500m from the local institutional buyside. Sare plans to use proceeds to increase production and boost efficiency following a debt restructuring, using proceeds to provide working capital for completing projects. BBVA and Santander managed the transaction. It is the sixth equity offering from Mexico this year. The market now turns its attention to the expected MXP15bn IPO of OHL Concesiones Mexico, set to price November 10.
Category: Regions
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LAN Buys Colombia Airline
Chilean airline LAN says it is acquiring a 99% stake in Colombian peer Aires for $32.5m. Analysts believe the buyer will be assuming Aires’ debt, since the acquisition price seems low. LAN says the price will be adjusted according to variations in Aires’ debt between the value at closing of the transaction and the value as stated in the company’s financial statements as of August 31. “This is a very good price for a company that has a 22% market share,” says Cristina Acle, a Chile-based equities analyst with Corp Group. Felipe Mercado, an equity analyst with Banchile agrees. “Colombia, with 10m passengers a year, has double the volume of other LAN markets such as Chile and Peru,” says Mercado. Both analysts believe it is probable that LAN will pay for Aires with cash on hand. LAN reported Q3 profit of $106m. Aires, founded in 1980, is the second largest domestic airline in Colombia. It provides service to 27 domestic destinations and 3 international destinations, and has a fleet of 24 airplanes. Analysts were unable to determine the enterprise value or debt load of the privately held company. LAN officials decline to say if there were any financial advisors involved.
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Digicel Taps CEO for Honduras
Jamaica-based cell phone company Digicel says it has appointed Damian Blackburn as CEO of its Honduras operations. Blackburn, who had previously been regional CEO overseeing 12 Caribbean markets, joined Digicel 2.5 years ago. He replaces Ghada Gebara, who left the company after 5 years to pursue private projects.
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Dow Jones Launches Peru Indices
Dow Jones Indexes has launched the LATixx Peru Government PES Bond and the LATixx Global Peru Government USD Bond Indexes. The market-cap weighted indexes are designed to measure the performance of the Peruvian government’s local and global issues in PES and USD. Back-tested historical data is available from January 1 2009, with the base date of December 31 2008 and an initial value set to 1,000, Dow Jones says. As of September 30, the LATixx Peru Government PES Bond Index had a year-to-date performance of 3.49%. The LATixx Global Peru Government USD Bond Index rose 16.62% over the same period.
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Venezuela, DR Snag IDB Loans
The IDB has approved a $700m loan to finance the modernization of the turbines of Venezuela’s Guri hydroelectric project, increasing power by 795MW. Venezuela will contribute a total of $609m in counterpart funds to the project, which will have a total cost around $1.3bn. The IDB loan is for 20 years, with a 6-year grace period and an interest rate based on Libor. Separately, the IDB has approved a $120m loan to the Dominican Republic to help enhance competitiveness. The IDB financing consists of a $110m loan with an amortization of 20 years, a grace period of 5 years and an interest rate based on Libor. The other $10m loan has an amortization of 15 years, a grace period of 5 years and an interest rate based on Libor. The multilateral does not comment on the loan spreads.
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Banorte Welcomes New Chairman
Mexican financial group Banorte has named Guillermo Ortiz as its new chairman effective in March 2011. Ortiz was head of Banxico, Mexico’s central bank, until early 2010, when Agustin Carstens took the position. Current chairman Roberto Gonzalez will become chairman emeritus. The appointments must now be approved by company shareholders.
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Infonavit Lands RMBS Jumbo
Mexico’s Infonavit has raised MXP3.37bn in UDI-denominated RMBS. The government-backed mortgage lender’s 2038 bonds pay a 4.15% fixed coupon, or Udibonos plus 295bp. Demand was 2.2x the offer, according to a banker on the deal. HSBC and Santander managed the sale, rated AAA on a national scale. Infonavit has sold MXP13.68bn this year of its mortgage backed bonds, commonly known as Cedevis.
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Colpatria Issues Local Bonds
Colombian financial conglomerate Colpatria sold COP200bn ($108m) in 10-year subordinated bonds priced at par. The AA+ rated notes pay IPC plus 5.20% to yield 7.60%. Proceeds will be used for working capital. Colpatria led the sale itself.
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Lenders Await Pemex Allocations
Bankers are keenly awaiting this week’s allocations on a Pemex $3.25bn dual-tranche loan. It has apparently received over $4bn worth of commitments from 15 banks, not including the leads, a fact that raises some eyebrows. “They are asking for pretty big tickets for tight pricing,” says a banker not on the deal. “It’s not that far from where banks have their own funding costs,” he adds. The deadline for commitments was 2 weeks ago. Sizeable tickets received include $250m from Sumitomo across both tranches, $150m from Intesa on the 5 year tranche, and $75m from EDC to the 3 year, according to market participants. The 3 year tranche is a $1.25bn revolver to replace a 2007 loan that matured in September that had been priced at 25bp+Libor, for which it is offering 125bp over Libor. Fees for participation in the range from 25bp-60bp for $100m, $75m, $50m and $35m tickets. Bookrunners on the tranche are Barclays, BBVA, Credit Agricole (admin agent) and RBS. Pemex also wants a new money 5 year term loan for $2bn at L+150bp. BBVA (admin agent), BNP Paribas, Credit Agricole, Citi, HSBC and Inbursa are bookrunners. Fees on the term loan range from 45bp to 85bp for $150m, $100m, $75m and $50m commitments.
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Ecopetrol Local Gets OK
Colombian oil giant Ecopetrol has received authorization from the finance ministry to issue COP1trn ($543m) in local bonds. A company spokesman says that a date for the issue has not been set, but that it should happen by the end of the year. Proceeds will be used for capex. Correval and Valores Bancolombia will lead the sale, the spokesman says.