Cencosud Gets in Early with $480m Loan

Chilean retailer Cencosud will launch Tuesday syndication of a $480m 5-year amortizing loan whose proceeds will pay for the acquisition of Brazilian grocery chain G. Barbosa. Santander is leading the highly sought after transaction, which already counts on BBVA and BNP as bookrunners. The financing is being launched very late in the year, though bankers close to the process say this is part of a strategy to get in ahead of the January rush. A glut of loan financing is expected in as poor credit conditions have created a large backlog and corporates, aware of the possibility of rising borrowing costs, try to lock in financing while margins are still attractive. As a result Cencosud will try to sign up MLAs early on and wrap up the financing in January, when other deals may just be getting off the ground. Cencosud will hold its bank meeting at the Park Meridien Hotel in Manhattan.