ICA 10-Year Prices in Line

ICA, the Mexican infrastructure construction company, raised $400m in a 10-year NC5 yesterday. The 8.900% coupon priced at 98.545 to yield 9.125%, in-line with guidance in the low 9 area. The offering had a book of close to $800m, according to a banker on the deal. ICA had originally been heard going out with a perp, but changed tack after receiving a tepid response. A New York-based EM-investor says the market had been comparing ICA to Cemex, as both are considered plays for Mexican construction. But ICA had been expected to price through Cemex, since it is considered a stronger credit. Cemex has a 2020 trading at around 8.50 – 8.70. “I think they shot themselves in the foot a bit with the failed perp,” the investor says. Another New York-based investor who passed on the deal says ICA’s high leverage made the issue less compelling. BAML, Morgan Stanley and Santander are leads on the deal. ICA is rated Ba3/BB minus. Proceeds will be used to repay outstanding secured debt and general corporate purposes.