Pemex Contractor Ekes Out HY Bond

Oceanografia, a Mexican marine-contractor, squeezed out a $335m high-yield bond Wednesday, defying a hostile market that sent at least one other issuer home empty-handed. The company placed the 11.25% 2015 NC4 bond at 98.814 to yield 11.50% with a handful of accounts, many of them risk-hungry hedge funds, according to one buysider who did not participate. The B+ 144a Reg S offering is the first dollar bond for the contractor, which is highly dependent on Pemex. Bankers away from the deal commend Oceanografia’s ability to get its deal done, but note a Mexican B+ should command a tighter spread, all other things being equal. Initial guidance was heard inside the 11.50% launch level. One buysider says EM new issues have more often than not performed poorly lately, owing to poor placement and pricing. Proceeds will go toward paying down maturing loans. Morgan Stanley managed the sale.