Category: Regions

Sigma Alimentos, the food unit of Mexico’s Grupo Alfa, plans to sell $250m in 2020 bonds. Sigma was to begin investor meetings today in Los Angeles, and visit New York and Boston before finishing in London December 7. The BBB minus issuer is looking to raise funds to refinance existing debt. Deutsche Bank and Santander are managing the sale. “The proposed issuance will improve the debt maturity profile significantly with maturities no greater than $120 million during the next 10 years,” says Fitch. The agency highlights a strong market position and diversified sales mix, while noting higher-than-historical debt levels stemming from derivative losses in 2008. Sigma would be the third Alfa unit this year to take advantage of good market conditions, following $200m sales of 2014 notes from both Petrotemex and Alestra in August.

Carlos Moctezuma, CFO of Mexican homebuilder Homex, tells LatinFinance his company is planning a “non-deal” roadshow and notes his team is in the process of setting up a meetings schedule. Credit Suisse is managing the tour. Fellow homebuilders Javer and Geo have issued dollar bonds this year looking to capitalize on the Mexican government’s moves to ensure continued demand for new homes in the country. Homex’s 7.50% 2015 bonds have recently traded to yield 8.38%, according to Credit Suisse data. S&P lowered the outlook Monday on Homex’s BB debt to negative from stable on higher than expected leverage in the last 12 months.

Mexico microfinance bank Financiera Independencia says it has agreed to acquire its peer Financiera Finsol for MXP530m ($40.9m). The buyer says it will issue up to 85m shares to finance the transaction. This deal will allow Independencia to expand in Mexico, where Finsol has 158 branches, and enter the Brazilian market, where Finsol has 16 branches, the buyer says. After closing, expected in the first quarter of 2010, Independencia says it will have a total of 356 branches and increase its loan portfolio by MXP794.6m to MXP5.6bn. Credit Suisse advised Independencia.

Mexico microfinance bank Financiera Independencia, which yesterday announced plans to acquire competitor Finsol, has initiated a Level 1 ADR program in the US OTC market. Each ADR is equivalent to 15 Independencia shares trading on the Mexican Bolsa. The shares will continue to trade there under the symbol FINDEP, as they have since 2007. BNY Mellon is the depositary bank for the ADRs.

Mexico’s central bank kept the benchmark interest rate unchanged at 4.5% last Friday, as was expected by most economists. In an effort to keep a consistent message out to the market regarding its view on a benign inflationary environment, the statement accompanying the move was nearly identical to last month’s, says JPMorgan. Banxico governors warn, however, that new taxes likely to be implemented in 2010 as part of the fiscal reform and the probable changes in administered prices will be inflationary, add the shop’s analysts.

S&P has cut Corporacion Interamericana de Entretenimiento (CIE) to SD from CC after approval by bondholders of amendments to MXP1.9bn in local notes and 97% of short-term bank loans. It also affirmed a CC rating on the company’s $200m senior unsecured notes maturing in 2015, of which $13.6m remains outstanding. “The downgrade reflects our view that the restructure of the debt certificates in the domestic capital market is similar to a distressed debt exchange and therefore tantamount to default,” says S&P credit analyst Monica Ponce. The agency adds that if short-term debt is not restructured, the company will default on at least some of its obligations. Moreover, the company’s operating results and key credit measures during Q3 were weaker than expected, it says. S&P predicts CIE will continue to comply with other obligations, such as a semiannual interest payment of the $200m senior unsecured notes rated CC, the next of which is due in December.

Prudential Real Estate Investors is planning to raise up to MXP6.5bn from a certificado de capital de desarollo (CCD) issuance through its Mexican arm. The CCDs would represent tickets in a 10-year fund investing in industrial real estate assets in Mexico, with a 5-year investment period. “We’re structuring a CCD, but really it is our third Mexican industrial fund,” Paulo Gomes, chief strategy officer for Prudential Real Estate Investors Latin America, tells LatinFinance. He explains Prudential has raised two previous industrial funds in Mexico, among seven real estate funds totaling about $2.4bn in equity commitments. This, however, would be the first where local pension funds can participate, thanks to the new CCD structure, thus far used by RCO and Wamex. Gomes says the fund will invest in light manufacturing and distribution facilities, and target a 16%-22% return. Unlike pure private equity funds, this real estate fund has the ability to start generating revenue very early, he says, mostly thanks to rental property income. Gomes says although the first CCDs have taken some time to close, Prudential is confident the track record of its previous funds and the work done by Afores on the previous CCD issuances, will help smooth the way. He also notes Prudential plans to put up 10% of the fund, up to $50m-equivalent, itself. BBVA is managing the transaction, expected to close 1Q 2010.