Mexican Miners Set for Bonds

Mexican miners Cobre del Mayo (CDM) and Fresnillio were each expected to price new bonds as soon as today, according to people following the transactions. Copper miner CDM was heard with more than $200m demand for a $200m-$250m 5-year bond, following 11%-area guidance given Wednesday. A deal would represent the international bond market debut for the B3/B credit. CDM is raising funds to refinance most of its $210m total debt. To determine pricing, CDM has been looking to single-B credits like Marfrig’s 2020, seen trading around 10.3%, and Gol’s 2020, trading around 11.5%. Jefferies, BCP Securities and Nomura are managing the RegS-only process. The issuer operates Mexico’s third-largest copper mine, Piedras Verdes. Separately, Fresnillo was expected with initial details on the sale it had been marketing through Wednesday. The BBB/Baa2 silver and gold miner was considering issuing both 10-year and 30-year bonds, with a $300m size per tranche, according to an investor following the deal. Citi, Deutsche Bank and JPMorgan are managing.