Televisa Tuesday issued a much anticipated MXP10bn local 10-year that had been expected September 9 but was cancelled at the last minute. The book was 1.3x oversubscribed and the bonds priced in line with guidance of Mbonos plus 135bp, says a banker at one of the leads. The main buyers were institutional investors, including Afores, private banks, investment funds and insurance companies. A month ago, investors said they were expecting the issue to price at about 120bp. At that time it was said that the bond issuance was cancelled because of volatility in local markets, and there was talk of Televisa seeking a dollar tap instead. However, some have since speculated that the offer was pulled because the issuer would have had to disclose an investment made in Univision. Televisa said October 5 it is investing $1.2bn in Univision, the US Spanish language broadcaster, in a deal that implies an equity valuation for the target of around $2.3bn. The market rewarded the buyer, sending Televisa stock up 13.75% on the day. HSBC and Santander managed the bond sale, rated AAA on a national scale. Proceeds will be used to strengthen the company’s financial position.
Category: Regions
PDSVA to Offer New Bonds, Swap
PDVSA says it will sell $3bn of 2017 bonds in the local market, with further details about the offer due October 18. As with previous government offerings, investors will be allowed to buy the dollar-denominated bonds with VEB. The offer is directed at individuals and businesses with the “sector productivo nacional” designation. The state-backed oil company also plans to offer holders of its 2011 bonds an opportunity to exchange them for 2013 bonds, with further details to be announced in coming days. PDVSA does not name banks, through Citi is rumored to be on the transaction.
White & Case Names Mexico Partner
US-based law firm White & Case has elected Mexico City-based Sean Goldstein as partner in its global project finance practice. He has experience representing sponsors in a wide variety of infrastructure and energy projects as well as in asset finance work. Goldstein is one of 35 new partners elected for 2011.
Bidders Prequalify for Peru Oil Blocks
Offers from 8 companies have prequalified to compete for 14 oil and natural gas blocks in Peru, says state oil contracting agency Perupetro. The investment needed to develop the blocks is estimated at $700m over the next 7 years, Perupetro says. The bidders are Argentina’s Tecpetrol, Colombia’s Ecopetrol, a consortium of Repsol, Ecopetrol and YPF, a consortium of YPF and Petrouruguay, UK-based Pitkin Petroleum and Sinochem unit Emerald Energy.
Lima Bolsa Set to Catch Fish IPO
Peruvian fishery Pesquera Exalmar is preparing to IPO in Lima, targeting an October 28 float. If successful, the deal would be the first Peru IPO since Interbank holdco Intergroup sold shares in 2007. Exalmar plans to sell 57.5m primary units and 54.4m secondary locally, as well as 119.9m primary shares internationally. The issuer does not indicate a value or price range, though says the sale should raise more than $100m when referring to proceeds in the prospectus. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint in Peru’s southern coast. The fishmeal and fish oil producer would be the second of Peru’s fisheries to go public, after Copeinca. Exalmar had gross income of $37.48m in 2009 and $47.43m in 2008, according to its prospectus. Santander, Citi and Interbank are managing the sale.
Mexican Banks Fill Local Pipeline
Scotiabank, Banco Inbursa and Banco Compartamos, as well as the government of DF are all looking to issue bonds in Mexico’s domestic market this week. Scotiabank aims to issue up to MXP3.5bn in a dual tranche 5-year and 7-year. The self-led deal is rated AAA on a national scale. The bonds are being issued to refinance MXP2bn that was due in September, MXP700m maturing in November and MXP800m due in December, according to investors. Both tranches will pay a spread over TIIE. Elsewhere, Inbursa is set to auction up to MXP5bn 3-year bonds. The transaction is self-led, joint with BBVA Bancomer and is rated AAA on a national scale. The bonds will pay a spread over TIIE, expected at around 20bp, according to investors. The deal follows on from the bank’s August bond issue, its first since it was set up in 1993. The bank issued MXN5bn in 5-year paper, which paid a spread of TIIE plus 24bp. Meanwhile, Compartamos, the microfinancing bank that lends only to women, will issue 4-year bonds. Price talk is at 125bp-135bp, refined from an earlier 130bp-140bp over TIIE, say investors. The deal is rated AA minus on a national scale. BBVA Bancomer is bookrunner. Compartamos is the only deal considered attractive by Afores, because of the spread offered. “The other bank paper will only price in the low-to-mid-double digits, and this is mostly bought by other bank treasuries, so this is not attractive to the Afores,” says one investor. The government of the Distrito Federal will also issue a dual tranche deal, via Deutsche Bank, for up to MXP2bn. The maturities are 4 years 8 months and 9 years 8 months respectively. The first tranche will be floating rate and the second will be fixed rate. The bonds are rated AAA on a national scale with the funds destined for public works. Part of proceeds will go towards financing of the Line 12 of the subway system, according to a lead banker.
OHL Eyes Mexico Spinoff
Spanish builder Obrascon Huarte Lain is preparing a listing of its Mexico assets, a deal which would give Mexico’s market the large IPO it has been awaiting for years. OHL is analyzing the possibility, and says it has not made a firm decision to go ahead. It has hired Credit Suisse, Santander, BBVA and UBS for a sale, according to market sources, and should make a decision to go or not in the next few days, with an eye on a deal before the end of November. There is no indication of how much of its Mexican operation OHL would float, but market sources expect a deal of $500m-$1bn equivalent. OHL is an active road builder and concessionaire throughout LatAm. In Mexico, it is building the Bicentenario elevated Mexico City toll road, Libramiento Norte de Puebla road, and latter phases of the Circuito Exterior Mexiquense road, and owns 100% of each, according to OHL. It also operates the Circuito Exterior Mexiquense Phase I road, Carretera Amozoc-Perote road and Toluca International Ariport, of which it owns 87%, 55% and 33%, respectively.
Venezuela Continues Nationalization Spree
The government of Hugo Chavez says it has nationalized oil lubricants firm Industrias Venoco, its subsidiaries and fertilizer company Fertinitro. The nationalization of the companies is being done to “reduce the prices of lubricants” as “PDVSA produces lubricant bases and then these private companies buy them and resell them at 4-5 times the original price.” Venoco officials could not be reached for comment. US-based Koch, which holds a 35% stake in Fertinitro, says it has not been told about the nationalization. Italy’s Snamprogetti holds a 20% in Fertinitro and Venezuelan state-run petrochemical company Pequiven holds 35%.
IMF Stymies Bolivia Bond Comeback
The IMF will be doing a study of the financial system in Bolivia next March or April, meaning the country’s planned bond issue will not take place until 2012, finance minister Luis Arce tells LatinFinance. Bolivia had been planning to do its first bond issue in 70 years mid-2011. Arce adds that CAF is helping to co-ordinate the transaction, but bookrunners, size and spread have not yet been discussed. “We want do the bond issuance to position Bolivia in international capital markets and demonstrate the country’s macroeconomic strength,” says Arce. “Interest rates are low and the economy is well managed. After 15 years working to overcome the debt crisis, we have not defaulted on payments, and have reduced our external debt from $4bn in 2006 to $2bn, so now is a good opportunity to issue a bond,” adds Arce. The finance minister says a bond issue would lead the way for corporates to also be able to tap the market. “The economy is growing but the financial system isn’t so we expect this to help develop the capital markets as Bolivia only really has money markets, not capital markets,” adds Arce. Proceeds will go towards strategic government projects. Over the next 7 years, Bolivia plans a $32bn investment program, and Arce says it already has 40% of the funding. It is looking for $17bn to come from overseas investment. Projects include generation and export of energy to Brazil and Argentina, a fertilizer plant and infrastructure. The latter includes a motorway to the northern region of the country to access natural resources. Funding for its projects will come from a mixture of public, private and PPP investment.
Cemex Agrees to Acquire Ready Mix
Cemex has agreed to acquire Ready Mix USA’s interest in two joint ventures between the companies. Cemex, the Mexican building materials company, will spend around USD360m on the transaction and consolidate USD17m worth of debt held by the joint ventures. The deal is expected to be completed in September 2011. The assets operated by the JVs include cement plants in Alabama and Georgia, and 10 sand and gravel pits, 149 concrete plants and 20 block plants located in Arkansas, Mississippi, Tennessee, Alabama, Georgia and Florida. The companies do not return calls seeking comment.