Camposol Plants Flag in Credit Market

Peru’s Camposol priced a $125m 5NC3 bond Thursday, landing its debut in the international bond market. The asparagus exporter and avocado producer priced the bond at 99.517 to yield 10% with a 9.875% coupon, inside 10.125% area guidance and earlier low 10s whispers. Some investors were put off by the deal’s small size at a time when liquidity remains a priority among the buyside, but overall leads were able to generate decent demand which reached $250m ahead of pricing. “We wanted to strengthen our name in the international bond market and decided to start with a smaller size,” Camposol’s CFO Jorge Ramirez tells LatinFinance. He added the company could potentially revisit the debt capital markets with a bigger size in about 4 years time. Though difficult to comp, leads were heard looking at Brazilian agricultural services company Ceagro which has a 10.75% 2016 bond yielding 11.5%. Proceeds are going to repay about $80m in debt and fund capex. The bond carries a change of control put at 101 as well as an equity clawback that will allow the issuer to redeem up 35% of the bond with one or more equity offerings during the first 3 years. Camposol is involved in the cultivation, processing and commercialization of agricultural products such as asparagus, peppers, avocados, mangos and grapes. It claims to be the world’s largest asparagus exporter and close to becoming the world’s largest avocado producer, according to its website. The 144A/Reg S senior unsecured notes are rated B3/B. Credit Suisse and Santander led the transaction with Scotia Capital as co-manager. The bonds had jumped to 101.25 in price Thursday.