High-Yield Debt Waits for Market to Settle

Volatility in the US and regional markets this week has put the LatAm high-yield pipeline on ice. Net Servicos was set to wrap up a US and European roadshow yesterday, and is heard to be considering a transaction if conditions are favorable, which is not the case. Although the Brazilian cable operator has not announced specifics, it has approved the issue of up to $200m in BB rated 2018 dollar bonds via Deutsche Bank and Santander. Costa Rica’s Grupo M is in the middle of a presentation via Merrill Lynch expected to last at least until the end of this week. The retailer, which put off a BB-/Ba3 issue of 2018 bonds in November, has yet to announce a specific transaction. Meanwhile, Colombia’s ETB completed a roadshow last week via Merrill and Deutsche and awaits an opportunity to price up to $300m in peso-denominated 2018 notes.