ENA Ventures Forth In Quiet Market

Panama’s Empresa Nacional de Autopista (ENA) emerged with official guidance Tuesday on a dual-tranche $395m issue, offering investors between high 100s to mid 200s over the Panama sovereign. Books were heard to be covered by Tuesday and went subject late afternoon ahead of expected pricing today. The deal comes amid continued uncertainty in the broader markets, leaving some accounts disinclined to participate in what is a relatively small and illiquid structured trade. Indeed the borrower is treading a somewhat lonely path this week in what has been a quiet LatAm new issuance market. Still unsteady markets haven’t deterred US high-grade names from tapping in recent days and this bodes well for the BBB minus/BBB rated ENA bonds. And despite a dearth of true comps, other investors have expressed satisfaction with the credit given the decent pick-up over the Panama 5.25% 2020s, which have been trading in the 3.54%-3.42% area. That compares to official guidance of 6% area on a $170m A tranche, with an average life of 8.40 years and a final maturity of 2025, and 5.25% area on a $225m B tranche, with a 4.59-year average life and 2019 maturity. The 144/Reg S notes will be listed on the Panama Stock Exchange, with collateral taking the form of collections from the Corredor Sur toll road and shares of ENA. Tranche A has a make-whole call at Treasuries + 50bp. Proceeds are to be used to refinance $150m of 6.95% amortizing 2025s that helped finance the Corredor Sur tollroad covering 19.5km of Panamanian highway. HSBC and Global Bank are leads.