Sanluis Puts Brakes on Bond

Mexican vehicle parts manufacturer Sanluis has postponed plans to raise funds in the international bond market, according to people following the 2022 NC5 bond transaction. After widening the yield target to 10%-area from initial high 9% talk, the issuer was heard generating close to $200m in orders. “The company decided to postpone due to the market not meeting its pricing expectations,” says a person familiar with the transaction. The issuer is heard satisfied with explaining its story and its improvement in credit metrics following a 2011 debt restructuring, and could consider another DCM attempt. Sanluis was looking to raise $200m-$250m in order to refinance debt. Bank of America Merrill Lynch and JPMorgan were managing the Ba3/B/B+ transaction.