Scribe Set For Bond Debut

Mexican paper products maker Grupo Papelero Scribe is set to price today a $300m bond, after giving yield guidance Monday of 9.125% area. The issuer finished a US and European roadshow Monday for the 2020 NC5 bond, a first issue under its present organization. At announcement, some in the market were expecting high 9%s or even 10%, but investors appear to have warmed to the credit following marketing. “It’s fundamentally better than Durango,” says a New York-based EM investor looking at the deal. He notes that leverage is not too high, and there is room for credit metrics to improve. Credit Suisse is sole bookrunner on the Ba3/BB minus 144a/Reg S bond, with Morgan Stanley as co-manager.