HY Credits Hit the Road

LatAm’s high-yield borrowers are hoping to keep the new issuance pipeline open through the end of the year, with Mexico’s Grupo Kuo and Colombia-focused Tuscany International Drilling set to meet investors. Canada-based Tuscany is preparing to issue $200m in 7-year senior notes, according to Fitch, which assigns a B+ rating. The land drilling services provider to oil and gas companies in Latin America plans to visit Canada, Latin America and the US this week, ahead of the possible B/B+ deal. The notes will be guaranteed by five of Tuscany’s subsidiaries and proceeds will be used to refinance existing revolving debt balances and for general corporate purposes. Tuscany operates predominately in Latin America and approximately 60% of its fleet is concentrated in Colombia and Brazil. Credit Suisse and Scotia are managing. Grupo Kuo plans to meet fixed-income accounts next week, after launching a tender targeting any and all of its $250m outstanding 9.75% 2017 bonds. The BB/BB rated holdco with activities in the consumer goods, chemical and automotive industries is starting a roadshow on Monday in London and Santiago, and visits Boston before wrapping up in New York and Los Angeles November 28. Credit Suisse, Citi and Bank of America Merrill Lynch are managing. Grupo Kuo in its tender is offering holders $1,053.75 cash per $1,000 principal before a November 30 early deadline, and $1,023.75 per $1,000 after, through the December 14 final deadline. Fellow Mexican Posadas is also preparing a deal for next week, likely a $225m 2017 NC3 at 8.25%, also to fund liability management.