Caribbean Financial Group Ends Show

Caribbean Financial Group (CFG), a holdco for consumer finance companies in Panama and the Caribbean ended fixed-income investor meetings in New York Wednesday, with no subsequent sign of coming to the market, at least in the short-term, say investors. The B minus rated corporate had been pitching a 3-year and a 5-year NC3 with a $150m-$200m size. Proceeds are thought to be slated for a refinancing of a Wells Fargo debt facility, but the US bank is heard to be flexible with the issuer’s plans and timing for a bond issue to address its revolver. Caribbean Financial Group was established in 2006 as a result of the sale of Wells Fargo Financial Latin American Consumer operations to Irving Place Capital, a private equity firm. Investors had mixed reviews on the credit with some eager to participate in a high-yield Caribbean transaction, at least if it came with minimum double digits of 10-11% and at a concession to Mexico’s Grupo Elektra’s recently issued 7-year NC4, which has been trading at around 7.25%. Meanwhile, other investors, albeit keen on the credit’s business, decided to pass given the small size and uncertainty over the credit’s future given questions over when Irving Capital would exit its investment. JPMorgan led investor meetings. According to one investor, a comfort letter was due to go stale on August 13 and so it made sense that the company waited to update its financials first before venturing into the market.