Petroterminal de Panama (PTP) has signed a $375m loan due 2018 to reconfigure an oil pipeline and build associated storage facilities. The syndicated project finance deal through HSBC as MLA and bookrunner priced at the higher of Libor+425bp and 6.75%, and is due July 15 2018. According to the leads, it is the largest private project finance transaction in Central America to date and was 1.3x oversubscribed, including 40% participation from locals. In order of size of ticket, participants were: BNP, Banco Nacional, Banco General, EDC, Scotia, Caja de Ahorros, Banesco, Bancolombia, Global Bank, CIFI, Towerbank, BAC, Metrobank, Produbank, Multibank and Banco Panama. The project-on-project risk and no outside cash equity is mitigated by a standby LC. Sponsors are the Panama government (50%), NIC Holding (33.17%) and Castor Petroleum (16.83%). HSBC was the co-swap provider and admin agent. PTP is a Panamanian corporation that provides crude oil storage, transportation, and transshipment services. Its primary assets consist of a 131km pipeline and 2 deepwater crude terminals with oil storage. Existing storage capacity consists of approximately 5.7m barrels (bbl) of tankage with 3.4m bbl currently under construction. The new project will expand total capacity by 5.4m bbl to 14.6m bbl. PTP also derives income from other services such as energy generation, marine services, operation of a cargo pier, and administration of a toll road.
Category: Regions
Banorte to Talk Capital Increase
Mexico’s Grupo Financiero Banorte said Wednesday it will propose a capital increase at a shareholders’ meeting planned for this month. The meeting will be held October 23 at the company’s headquarters in Monterrey, Banorte says in a filing with the local stock exchange. It does not provide further details of the capital increase.
Avianca and TACA Fly Together
Colombian airline Avianca is merging with Central American carrier TACA to form a group that the pair says will produce nearly $3bn in aggregate annual revenue. The deal could lead to equity issuance, according to an analyst covering the sector. “The shares of both Avianca and TACA’s controlling entities will be contributed to a new holding company in a business combination worth in excess of $3bn,” says TACA. Avianca shareholders will control two thirds of the new company, with the other third in the hands of TACA owners, according to Reuters, which cites TACA CEO and chairman Roberto Kriete. “Each operating company will remain independent while the new group will leverage best business practices across both organizations,” TACA says. “It makes sense in that the 2 didn’t have a choice,” says an equity analyst covering the sector who asks not to be identified. “It doesn’t make sense because they both need money . . . the equity market is the logical next step,” he adds. Kriete will become chairman of the new group’s board, Avianca CEO Fabio Villegas will serve as CEO, while TACA COO Estuardo Ortiz will be COO and Avianca CFO Gerardo Grajales will head up finance. The merging entities note that the airline sector faces a still challenging economic environment, volatile fuel prices and intense competition. Bank of America-Merrill Lynch and Caoba Capital acted as financial advisors to TACA, while Greenberg Traurig was counsel. Simpson Thacher & Bartlett and Gomez-Pinzon Zuleta were counsel to Avianca. Avianca and TACA serve more than 100 destinations worldwide, including 75 cities in LatAm. The transaction is subject to regulatory and other antitrust approvals.
Peru Expected to Keep Rate at 1.25%
In line with consensus, Morgan Stanley expects Peru’s central bank to keep the monetary policy rate on hold at 1.25% despite the continued drop in inflation as the bank waits for the effects of the past policy easing to filter through to the economy and the global recovery to lift expectations and domestic demand. Bulltick Capital, on the other hand, is going against market consensus and expects a 25bp cut, bringing the policy rate to 1.00%. Its forecast is based precisely on inflationary weakness. “The September 2009 inflation number came at -0.50% month over month, bringing annual inflation to 1.20% from 1.87% in August and from 6.53% year over year at the beginning of the year,” it says. “The central bank’s inflation target range is 1.00% to 3.00% and we expect the rate to end the year at its lower end, at 1.00% year over year, giving the bank further room to cut rates and maintain them low for long,” Bulltick adds.
Morgan Stanley Sees Colombia Growth
Morgan Stanley has improved its 2009 GDP growth forecast for Colombia to 0.5% expansion from a 0.9% contraction, and 2010 to 4.1% from 2.6% growth. The shop says that Colombia’s GDP contracted less than other LatAm economies when the external shock hit in Q4 2008. While Colombia saw a 1.4% contraction, Brazil’s GDP shrunk 3.4%, Chile’s 2.4% and Mexico’s economy 2.4%. It also says economic activity in Colombia quickly returned to the growth path this year, expanding by 0.3% and 0.7% in the first and second quarters, respectively.
Kimberly-Clark Sells MXP Bonds
Kimberly-Clark de Mexico has sold MXP2.7bn in bonds on the domestic market. The Mexican unit of the manufacturer of Huggies diapers and Kleenex tissues placed MXP2.3bn in 2014 floating-rate notes at TIIE plus 95bp and MXP400m in 2019 fixed rated bonds paying 9.67%, or Mbonos plus 190bp. Demand topped MXP4.6bn on the floating part and MXP1.1bn on the fixed portion, according to bankers on the deal. Banamex and HSBC managed the sale, rated AAA on a national scale. It was the issuer’s second placement of the year, following a MXP3.5bn fixed and floating-rate placement in March through the same banks. GE Capital is expected to follow today with MXP2bn in 2012 floaters via Banamex.
Chilean Moly Maker Places Mexican Notes
Chile’s Molymet has sold MXP700m in bonds, becoming only the second foreign issuer in Mexico’s domestic market, according to bankers managing the sale. The processor of molybdenum and rhenium sold MXP700m in 2011 bonds at TIIE plus 205bp. The issuer, which wanted to come to market last year before the crisis hit, opted not to place 2014 UDI-denominated bonds for which it had also filed. Credit Suisse and Banamex managed the sale, rated AA/AA+ on a national scale. Santiago-based Molymet operates a molybdenum processing facility in Sonora, northwestern Mexico. Spanish utility Iberdrola last year was the first foreign issuer in Mexico’s local market, with a MXP1.5bn 2018 bond.
Penoles Starts Loan Prepayment
Mexico’s Industrias Penoles says it has paid off $150m of a $530m 3-year dual currency syndicated loan due 2011. One of the facility’s two tranches is worth $455m and denominated in USD, while a second MXP-denominated piece, is worth $75m equivalent. The company says it will continue to pay interest on the outstanding portions, which carry rates of Libor or TIIE plus 75bp-145bp, according to data from Dealogic and a company statement. Penoles, the parent company of precious metals miner Fresnillo, took out the loan in June 2008 to refinance $380m in bonds issued in 1997 and 2006. JPMorgan led the facility, with BBVA, BNP Paribas, Santander, BofA Merrill Lynch, EDC, HSBC, ING, Intesa Sanpaolo, Mitsubishi, SocGen, Scotia, Standard Chartered, and SMBC as joint MLAs.
Pemex Supersizes Domestic Debt Shelf
Pemex has filed to raise to MXP140bn its 5-year program to sell certificados bursatiles on the Mexican market. The original program was filed in March for MXP70bn. The state-owned oil producer has been an active issuer this year, placing several deals including a pair of MXP10bn bonds in the domestic markets in April and May, as it pre-funds as much as it can of the $18.6bn it needs for 2010 capex. No indication of a new issuance is mentioned. Santander is listed as a manager.
Endesa Sells Stake in EEB
Spanish energy company Endesa has sold a 7.2% stake in Colombian state-controlled energy company Empresa de Energia de Bogota (EEB) on the local stock market for $247m. Bogota city council controls 81.5% of EEB, while Ecopetrol owns a 7.3% stake and financial holding Corporacion Financiera Colombiana has 3.8%, according to Dow Jones. EEB has a market cap of $3.5bn, according to Citi, which advised.