Credito Real Plans MXP Float

Credito Real, the Mexican discount payroll lender, is looking to go public on the local bolsa as soon as the middle of this year, says a person close to the company. The IPO could raise at least $200m equivalent for a 20%-30% stake, says the source, who asks not to be identified. The deal through UBS, Morgan Stanley, BBVA Bancomer and Ixe will be done in Mexico but also have a 144a component, adds the source. Other candidates to go public this year, Mexico-based bankers say, include dairy Grupo Lala, theatre operator Cinepolis, paint maker Comex, airline Volaris and hospital operator Grupo Angeles, in what bankers say could be another busy year for IPOs. Some predict another 10-15 transactions, though bankers concede that individual deal size will likely be small. Mexico-based Nexxus Capital Private Equity Fund III took a 22.5% stake in Credito Real in November 2007. The rest of the company is owned by the Berrondo (majority), Saiz and Esteve families, who also own Mabe. Credito Real in September raised $60m in a reverse inquiry-driven retap of its 10.25% coupon 2015 bonds. The payroll discount lender reopened at par, to yield just under the 100.50 secondary price at the time. Bank of America Merrill Lynch (BAML) managed the sale, which brings the outstanding amount to $210m. The BB minus rated borrower in April raised $150m in a debut issue, also priced at par and managed by BAML. The source close to the issue says the bond was trading up at 108 this week.