Braskem Expected to Grow Loan

In a rare piece of positive news for the LatAm bank market, Braskem, the Brazilian petrochemicals producer, is heard increasing a 5-year pre-export facility. The deal will likely grow to at least $700m, from an originally targeted $500m, and with no flex on the Libor plus 175bp pricing, say people close to the process. Bankers and company executives are hesitant to celebrate before closing, noting volatile market conditions can lead to last minute pullouts that might push the final figure back down. The transaction, which had been waiting in the wings for months prior to launch in early September, is part of the takeout of a $1.2bn bridge raised last year to acquire competitors Ipiranga and Copesul. Braskem paid down part of the bridge late May with a $500m 2018 bond priced to yield 7.375%. The BB+/Ba1 offer was upsized from a $400m launch and led by ABN, Calyon and Citi. Braskem officials acknowledge that the loan is being wrapped up, but they decline to comment on any change in size. The facility is led by Calyon, Citi and Santander, which inherited the transaction through its acquisition of ABN AMRO’s Brazil unit.