Zoltek Companies, the US carbon fiber producer, is paying $100m to buy and revamp the Guadalajara-based Crysel acrylic fiber manufacturing assets of Mexico’s Cydsa. Zoltek plans to retool and modify the facility to supply its US operations with low-cost precursor, the principal raw material used in manufacturing carbon fibers. “Zoltek expects the facility will serve as a site for additional carbon fiber production lines supporting Zoltek’s strategic goal of achieving $500m in annual sales of its high-performance commercial grade carbon fibers by fiscal year 2011,” says the acquiror. Zoltek is using a portion of the proceeds of an August secondary common stock offering, along with cash from operations, to fund the investment. It expects precursor production to begin by the end of fiscal 2008.
Category: Regions
Jamaica Retaps 2039 for $150m
Jamaica reopened its 8% of 2039 bonds Wednesday for $150m, the first transaction from the new administration in the B1/B/B+ rated Caribbean nation. The notes were priced at 97.5 to yield 8.224%, or 341.2bp over the 2037 US Treasury note. The bond, originally offered in March for $350m to yield 8.125%, amortizes equally in the last three years. Deutsche Bank led.
European Rates Setters Watched for LatAm Direction
BBVA is flagging for LatAm investors upcoming external news, including the rate decision of the Bank of England and the European Central Bank on Thursday, and the US non-farm payroll growth on Friday.”A change in tone in the communiqué of the central bank meetings that implies an end to hikes would support LatAm asset markets and other risky assets,” says BBVA. “This would be true, even in the likely event that policy rates are not changed.”
IFC Signs Nicaragua Housing Deal
The IFC has signed an agreement to help Banco de Finanzas in Nicaragua develop a housing finance line of credit for low and middle-income families. The multilateral will provide a $15m long-term financing for the program. In addition, Banco de Finanzas became the first issuing bank in the country to join IFC’s global trade finance program. IFC will also provide advisory services to help Banco de Finanzas expand its products for micro, small and medium enterprises. “This project is consistent with IFC’s strategy in Central America, which aims to help accelerate private sector development,” says Jyrki Koskelo, IFC director for global financial markets. In fiscal 2007, IFC invested $76m in CentAm private sector projects.
Grupo KUO Preps $200m Bond Offering
Mexico’s Grupo KUO, a maker of auto parts, plastics and canned foods formerly known as DESC, is preparing a $200m 2017 bond offering to fund the refinancing of existing debt. Pricing is expected at the end of next week, following a roadshow in the US and Europe. Citi and Credit Suisse are joint bookrunners on the offering, rated BB- by Fitch and S&P.
Nemak Raises $640m, Heads to Retail
Mexican autoparts maker Nemak has clinched a $640m 5-year term loan via nine banks and will Wednesday launch the deal to retail at a meeting in Mexico City. The loan pays 75bp out of the box on a leverage grid that moves between 65bp and 85bp over Libor. Leads HSBC, Citi, BBVA and Standard Chartered were joined by five MLAs: BNP Paribas, EDC, Comerica, ABN and BofA.
RBC Reportedly Joins RBTT Bidding
The Royal Bank of Canada is close to buying Trinidad and Tobago’s RBTT Financial Group for more than $2bn, the Trinidad & Tobago Express reports, citing unnamed sources. The newspaper says the takeover would be paid for with 60% cash and the rest in shares, and has already won approval from key shareholders, while RBTT’s board of directors is close to giving its approval. RBTT has been in discussions with potential buyers for months. Other rumored suitors include Canadian rivals Scotiabank and CIBC, through its FirstCaribbean unit. A FirstCaribbean transaction, which would have formed a Caribbean retail and investment banking force, was strongly rumored during the summer. RBC was not available for comment.
Jamaica Heard Mulling 2039 Retap
Jamaica is heard to be considering reopening its 2039s in the coming days for as much as $150m, its first financing since the change of government. In March the sovereign issued $350m of the notes to yield 8.125% via Citi. This time around, the mandate is heard to have gone to Deutsche Bank.
Durango Prices 2017 In Line With Guidance
Mexican paper and packaging company Corporación Durango has priced a $520m 2017 bond issue at par to yield 10.5%, in line with 10.5% area talk. The non-call 5 notes rated B+ by S&P consolidate two tranches – the other a 5-year amortizer – that were being considered. Proceeds will be used to refinance debt. Durango is doing a tender offer for $419m in bonds and some loans, which is contingent on the cash raising. About 70% of the notes went to US investors and 25% to European investors. Merrill Lynch was sole underwriter.
LatAm Equity Funds Soar
LatAm equity funds gained 6.86% in the week ended September 27, the best performance of all equity sub-classes tracked by Lipper. LatAm even outdid China Region funds, which returned an equally impressive 6.47% in the same period. EM funds also rallied, clocking returns of 4.54%. Year to date, LatAm has jumped 40.09%, compared to 58.89% for China Region and 30.96 for EM funds. In the previous week, the region rose 4.01%.