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.
Category: Regions
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.”
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.
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.
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.
Carvajal Trades Comolsa for Pamolsa
Colombian conglomerate Carvajal Internacional is exchanging a 60% stake in Colombiana de Moldeados (Comolsa) with local investment firm Fama for a 37% stake in Peru-based Peruana de Moldeados (Pamolsa). Oscar Dario Morales, vice president of finance at Carvajal, tells LatinFinance his firm will hold about 90% of Pamolsa and Fama will own about 95% of Comolsa. Morales says terms are still being discussed. Pamolsa has annual sales of about $65m-$70m a year, while Comolsa’s annual sales are around $45m-$50m, he adds. Morales says that Comolsa, which produces cardboard packaging, is not part of Carvajal’s core business, while Pamolsa, which makes plastic packaging, is. In a separate transaction, Carvajal sold a 63% stake in Musicar, a music provider, another non-core unit for about $5m, Morales says. Fellow Musicar shareholders Caracol Radio and Valorem, which owned the remainder of the company, also sold stakes to a group of investors that includes former Carvajal and Musicar management, Morales says. Musicar accounts for less than 1% of Carvajal’s revenue and the deals were privately negotiated, Morales says.
Isagen Plans November Bond Sale
Colombian power company Isagen says it plans to issue COP400bn ($219m) in local bonds to finance development of the Hidrosogamoso hydroelectric project. Hidrosogamoso will generate 820MW and increase Isagen’s capacity by 43%. Terms of the deal and leading banks have not been disclosed and company officials could not be reached for comment. In September 2009, Isagen sold COP450bn in inflation-linked bonds in a debut placement on the domestic market to raise proceeds for Hidrosogamoso, which is expected to require an investment of $1.4bn.
Trafigura Sells Volcan Preferred Shares
Global commodities trader Trafigura has sold about a 25% stake of the preferred shares of Peruvian zinc and silver miner Volcan Compania Minera for around $400m equivalent, say bankers in Peru not involved in the deal. The shares were sold in several blocks via the local exchange and the buyers are local institutional investors, says one of the bankers. He adds that Trafigura acquired the stake in 2006 and sold it because Volcan is not part of its core business. Another banker says that BBVA Continental and Scotia handled the transactions.
Credicorp Buys Alico’s Pacifico Stakes
Peruvian financial conglomerate Credicorp says it is acquiring a 20.1% stake in Pacifico Seguros and a 38.0% stake in Pacifico Vida from US-based American Life Insurance Co. (Alico) for $170m in cash. Alico is owned by AIG through a SPV, though the parent is in the process of selling the company to MetLife. The acquisition of the Pacifico shares brings Credicorp’s stakes in Pacifico Seguros to 96% and to 100% in Pacifico Vida. “These are acquisitions that we have been planning ever since AIG ran into trouble,” says a Credicorp spokeswoman. AIG, which had to be bailed out by the US government in 2008, is expected to complete the sale of Alico in the next few months, according to company information. Credicorp’s spokeswoman says the company will finance the acquisition with cash on hand. “We had set aside funds so we could be able to finance the deal once we were able to execute it,” she says, adding that the deal was negotiated privately.
Genomma Lab Buying More Brands
Mexico-based drug and personal hygiene company Genomma Lab says it is acquiring 5 more brands for about MXP1.0bn ($85m). The company says it will use cash and long-term financing to cover the deal, adding that it is currently in negotiations with banks whose names it does not disclose. The brands, which together had sales of MXP514.1m in 2009, are shampoo and conditioner Vanart, Galaflex and Sante, hair dye Affair and skin cream Pomada de la Campana. Acquisitive Genomma has purchased 14 brands in the past 16 months. A company shareholder who was involved in the transaction says the deal was privately negotiated. The identity of the vendor was not disclosed.