Petrotrin Piques Investor Interest

Petrotrin has given 10%-area yield guidance for its benchmark-size 2019 bond that is set to price today. The Trinidad and Tobago state-owned oil and gas producer concluded a US and European roadshow Monday, and had by Monday afternoon amassed an order book reaching $3bn, according to investors. The final size is expected be between $500m-$800m. A final yield in the high-9%s would be in line with initial expectations. Despite an investment grade BBB/Baa3 rating, Petrotrin’s outstanding 6% 2022s have been trading to yield in the low 9%s. While the credit can count on state support, S&P notes its stand-alone profile would be in the BB category. The issuer is raising funds to support construction of facilities related to its clean energy program. Credit Suisse and JPMorgan are managing the transaction. In the other cross-border deal expected this week, Mexico’s Petrotemex was heard whispering mid-9%s as it wrapped up its roadshow in London Monday. The BB/BB+ petrochemicals producer controlled by conglomerate Grupo Alfa is pitching a 2014 bond. The order book was heard reaching $200m Monday afternoon, according to investors. Bank of America-Merrill Lynch and JPMorgan are managing the transaction, whose proceeds will refinance old debt.