Category: Regions

Power generator InterGen has launched a $310m debt package to support its purchase of two plants in Mexico from Canadian utility TransAlta. A $210m 14-year term loan is priced at 135bp stepping up to 160bp over the life of the loan, as is a $100m 5-year revolver. The Massachusetts-based generator bought a 511MW portfolio consisting of the 252MW Campeche facility at Palizada in the Yucatan Peninsula and 259MW Chihuahua in Juarez. Both have 25-year PPAs with state utility CFE. Calyon, WestLB and Export Development Canada are the MLAs.

Alberto Baz has returned as CFO of Sare Holding has after a one-year leave of absence, the Mexican homebuilder said. Baz, who previously served as CFO for five years, will resume his duties May 1. Fernando Solis, who served as interim CFO during Baz’s personal leave of absence, will lead the Sare’s new institutional relations department.

Moody’s upgraded eight of the State of Mexico’s outstanding loans to Aa2 from Aa3 on a national scale. The agency also assigned Aa1 national-scale ratings to ten new loans to be included in the state’s loan trust. The action comes as the state is wrapping up a MXP27bn debt refinance. The amortizing deal in 20, 25 and 30-year tranches, with roughly a third of the amount in each, has an average duration of 12.5 years and a weighted average spread is 48bp over 28-day TIIE. For the first time, government development bank Banobras provided a first loss guarantee, for 27% of the deal. The final phase of the transaction is expected to close May 2 and involves long-term swaps of floating to fixed rate MXP.

The IFC has agreed to provide a $40m equivalent peso revolver to Hipotecaria Vertice, and take a $6m 15% equity stake in the Mexican mortgage lender. “The new facility allows us to have more competitive products and rates,” Samuel Suchowiecky, CEO of Vertice, tells LatinFinance. He explains that Vertice is about to roll out products targeting specific niches among low and middle-income borrowers. Vertice’s goal is to reach 3,000 mortgages worth $90m-$120m this year, he says. The lender had a MXP500m construction bridge loan securitization last year issued from a MXP2bn shelf, and plans to place another in the next few months. By early 2009, Vertice expects its first RMBS issue says Suchowiecky.

Mexico’s Grupo TMM is preparing a MXP1.55bn issue of 2028 bonds backed by an oil service contracts it has with Pemex. The revenues will come from five service ships it has contracted to Pemex facilities for five years. The sale, being managed by Value Casa de Bolsa, is expected in the next two weeks.

Fitch has downgraded Petrotemex, the Mexican petrochemicals company, to BBB minus from BBB. The rating action affects Petrotemex’s $75m privately placed senior notes due 2012 to and the $115m guaranteed senior notes due 2014 issued by its subsidiary DAK Americas. The outlook was also revised to negative. The move reflects additional concern over Petrotemex’s ability to generate profits going forward, says Fitch.