Peru Fishmeal Monger Tightens Debut Bond

Corporacion Pesquera Inca (Copeinca) has raised $175m in its debut 2017 dollar bond sale, upsizing by $25m and hooking a 9.125% yield that is inside guidance. “This is an important player in its industry, and it’s great that they are taking out existing debt with the proceeds,” says a New York-based EM investor. He frets only that allocations were likely to be small, based on an apparent $900m demand. The BB minus note priced at 99.364 with a 9.000% coupon to yield 9.125%, inside 9.500%-area guidance. Despite the tightening, the bond was trading up 2 points at the end of the day Tuesday, according to investors, who also note a lack of high-yield corporate supply from Peru. Credit Suisse and Santander managed the sale. Copeinca plans to repay debt with proceeds, which total $173.9m, according to an investor. It had borrowed $185m in 2007 through a 5-year loan arranged by Credit Suisse, BBVA, WestLB and Glitnir.