Canada’s Talisman Energy has sold its 12% position in Colombian pipeline operator Ocensa to US private equity firm Advent International for $595m, it says, a key part of Advent’s purchase of a 22% stake. Talisman retains transportation rights for the 830km pipeline, which links the Llanos Basin to the Covenas port in Colombia. Advent is working on a $600m loan to help fund the purchase of 22%, which includes portions owned by France’s Total and Spain’s Cepsa in addition to Talisman’s piece, according to people following the process. The 7-year amortizing loan pays Libor+450bp. Citi, Itau and Natixis are leading the transaction, expected to close before the end of the year. The total purchase price of the 22% stake is expected to be more than $1bn.
Category: United States
Businesses on Mexican border prep suit against tax hike
VAT rise as part of Mexico’s fiscal reform provokes ire in region that contributes 25% of GDP
Advent Targets Loan for Colombian Pipeline Buy
US private equity firm Advent International is preparing a $600m loan to help fund the acquisition of a 22% stake of Colombian pipeline operator Ocensa, LatinFinance understands. A bank meeting was held in Colombia last week for the 7-year amortizing facility, done through a special purpose vehicle, with pricing at Libor+450bp. MLA, lead arranger and arranger tickets – of $80m, $50m and $25m, respectively – are on offer. Citi, Itau and Natixis are leading the transaction, expected to close before the end of the year. The total purchase price of the stake is expected to be more than $1bn. Canada’s Talisman Energy is selling its 12% position, along with portions owned by France’s Total and Spain’s Cepsa. Talisman would retain transport rights for the 830km pipeline, which links the Llanos Basin to the Covenas port in Colombia.
Harvest to Unload Vene Assets
Harvest Natural Resources has received a $400m offer for its 32% stake in Venezuela’s Petrodelta from Argentina’s Pluspetrol, it says. In the deal, Harvest would sell its 80% interest in Harvest-Vinccler Dutch Holding (HVDH). Harvest would sell 29% of HVDH immediately for $125m, and sell the remaining 51% for $275m during 1H2014. The US E&P operator plans to use proceeds to pay off long-term debt and for working capital. The deal is subject to the negotiation of definitive agreements between the two firms, as well as approval from stockholders and the Venezuelan government.
US Boutique Heads to Mexico
BCP Securities has opened a Mexico office, through a JV with local partners, the US-based boutique says. The independent broker-dealer and investment bank primarily focused on EM bonds will partner with Hector Rangel, Anthony McCarthy and Maria del Carmen Arreola – all three coming from senior roles at Banomext and Nafinsa. Rangel is to be president of BCP Securities Mexico. BCP has offices in Sao Paulo and Rio de Janeiro, in addition to LatAm focused staff at its US headquarters.
American’s Comex Bid Denied Again
Mexican antitrust regulators have denied an appeal to Sherwin-Williams in its quest to acquire Consorcio Comex, Sherwin says, meaning the acquisition isn’t authorized. The US paint maker “is considering all options, including whether to refile with the [Mexican Competition] Commission.” The parties agreed last year on the $2.34bn sale of all of Comex, before regulators challenged the Mexican portion in July. Officials were concerned about the ability to set artificially high prices in Mexico. In September, Sherwin completed the acquisition of Comex’s US and Canadian businesses, for $90m cash and $75m assumed liabilities. HSBC and JPMorgan have been advising Comex and Goldman Sachs advising Sherwin.
US Firm to Try Fibra Market
Prologis has added its name to the Mexican equity pipeline, and is planning to sell shares in a Mexican Fibra real estate fund focused on manufacturing and logistics properties, according to regulatory documents. The Prologis Property Mexico fund plans to sell shares in a fund initially holding 177 properties in several Mexican cities. The size and exact timing remain to be determined, though an initial filing this week sets up a pricing by December if the issuer finds conditions acceptable. Banamex, Banorte-Ixe, Actinver and Credit Suisse have been hired to manage. US-based Prologis manages property in 21 countries. The most recent Fibra, Danhos, raised MXP5.98bn ($454m) earlier this month, though its pricing at the bottom of the range has kept in place concerns of Fibra oversupply. Danhos has traded down 0.1% since its pricing. Other Fibras have also fallen, with Fibra Uno and Fibra Macquarie, two of the largest, down 2.1% and 6.6%, respectively, this year.
US Developer Exits Mexico Retail Portfolio
US developer Kimco Realty has agreed to sell a four-property shopping center portfolio in Mexico to Planigrupo, for MXP1.2bn ($92m), it says. The portfolio includes the Plaza Universidad in Pachuca, La Nogalera in Saltillo, Gran Plaza in Cancun and Plaza Bella Huinala in Monterrey. The closing of this sale is subject to Mexican regulatory approval, and is expected to be completed during 4Q 2013. The deal follows another $274m portfolio sale to Planigrupo in May.
American Betting on Brazil Education
US educational operator Laureate Education has entered into an alliance with Brazilian university chain FMU, FMU says. Neither party has officially made an announcement calling the transaction a sale, but FMU says the alliance must be approved by Brazilian antitrust regulators. Reports in the Brazilian press suggest terms could be announced as soon as this week. FMU has 90,000 students and annual revenue of BRL450m. Laureate has been in Brazil since 2005, when it acquired control of Anhembi Morumbi.
American, Mexican Team up for Hotel CCD
US hotel-focused private equity firm Brilla Group and Mexican real estate investor IGS are preparing a certificado de capital de desarrollo (CCD) transaction in Mexico’s domestic market, according to regulatory documents. The BRI-IGS fund created will invest in hotel assets throughout Mexico. The target size, to be reached through capital calls, remains to be determined. The fund plans to spend five years making investments and five years exiting. Investors are to receive the principal invested plus a 10% preferred return, with remaining profits divided 80%-20% between investors and the managers. The managers expect an 18% return overall. Actinver is managing the transaction, for which the timing remains unclear. The deal would be the first real estate CCD focused on hotels, and follows several hotel plays appearing in Mexico’s public equity markets, all to take advantage of the increasing domestic travel forested along with expected GDP growth.