Mexichem Aims Bond Sights

Mexichem was heard targeting 5.50%-area yield late Tuesday for a new 2022 bond, expected to price as soon as today, in a sale also expected to include a new 2042. The shorter bond is expected at a $700m size and the 30-year at $300m, according to ratings reports assigning Ba1/BBB minus ratings. Investors are taking a look at Braskem’s 2022s and 2041s, trading Tuesday to yield around 5.17% and 6.84%, respectively, as comps. The Mexican chemical producer was scheduled to finish fixed-income investor meetings Tuesday. Proceeds will be used to reduce debt, including the funding of a tender offer launched Friday targeting its $350m outstanding in 8.750% 2019 bonds. In the tender expiring September 13, Mexichem is offering holders $1,245 cash per $1,000 principal, which includes a $30 consent payment to adopt proposed covenant amendments. Citi, HSBC, JPMorgan and Morgan Stanley are handling the tender offer, the new bond sale, and an upcoming equity follow-on expected to raise as much as $1bn. LatAm DCM volume has been slower this week than last, with some issuers until after the US FOMC meetings scheduled to begin today. In addition to Mexichem, Santander Chile is heard considering a benchmark 10-year bond to price as soon as today, with Peru’s Maestro looking at coming to market as soon as Thursday.