Follow-ons Set to Price

Equity deals from Brazil’s Direcional Engenheria, Argentina’s Ternium and Mexico’s Banorte are each set to close books today and price this evening. Brazilian steelmaker Usiminas plans to sell as much as its entire 14.25% stake in Argentine peer Ternium. The sale, in the form of ADSs, includes $150m worth of shares it has agreed to sell to Ternium directly and $100m it has agreed to sell to Ternium’s controller, Techint, with the remainder to be sold publicly. JPMorgan is global coordinator, with BAML, BTG Pactual, Citi and Morgan Stanley as bookrunners. Mexico’s Gruma is scheduled to sell most of its 8.8% stake in Banorte. The tortilla maker plans to sell up 141.9m shares in the bank in the US, Mexico and other markets, with the option of a 14.2m greenshoe. At Tuesday’s MXP53.66 closing price, Gruma would get up to MXP8.38bn from the sale. Books are set to close today, with pricing to be announced tonight or Thursday. The available shares represent 7.7% of Banorte, lowering Gruma’s holding to 1.1% from 8.8%. Banorte, BBVA Bancomer, Morgan Stanley and UBS are managing the sale. Finally, homebuilder Direcional is set to offer 20.8m primary and 7.2m secondary shares, which would raise BRL367m at Tuesday’s BRL13.10 closing price. Bank of America Merrill Lynch, Itau, BTG and Santander are managing the deal, which in initial documents had been scheduled for Tuesday.