Reverse Interest Drives Rubiales Retap

Pacific Rubiales took advantage of reverse inquiry to raise $300m through a reopening of its 2021 bonds Monday. The Colombian-Canadian E&P operator reopened the 7.25% coupon notes at 105.00 to yield 6.241%, in line with 105.00 guidance and earlier 105.00-area initial price thoughts, according to people familiar with the terms. The 2021s were seen trading at a price of 107.00-107.50 pre-announcement, say bankers following the deal. The Ba2/BB+ borrower’s books topped $800m within 60 minutes of announcement, with interest from more than 50 accounts. Rubiales plans to use proceeds for general corporate purposes. Citi, HSBC and Itau managed the transaction, which follows a $1.3bn sale of new 5.375% 2019 NC3 bonds earlier this month, done at a 5.375% yield.