Even Construtora, a Sao Paulo-based homebuilder, says it expects to raise equity capital worth around BRL632m via the sale of primary and secondary shares. The company does not specify the number of units, but it does provide the target amount, which is based on a March 9 close of BRL7.29. The primary portion will account for 64% of the sale, while selling shareholders, namely Spinnaker Capital Group, plan to divest the remainder of the sale. The London-based fund, which has offices in Sao Paulo, Singapore, the Middle East and Asia, invested BRL150m worth of equity in Even in 2008 through a private share sale. It plans to realize gains through this first liquidity event. Also selling shares in the deal are CEO Carlos Terepins and board member Luis Terepins. Even’s 2007 IPO was led by UBS Pactual and Itau BBA. The filing does not state underwriters on the upcoming offer.
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AMX Opens Up Swiss Investor Base
America Movil, LatAm’s biggest wireless-phone carrier, has raised CHF230m ($215m) in 5-year money via its first sale in the Swiss market. The deal raised CHF30m more than expected and priced at 100.547 with a 2.250% coupon to yield 2.130%, or mid-swaps plus 65bp. Pricing is in line with a 2.25% indicative coupon given Tuesday. A banker on the deal notes the debut was well oversubscribed, but declines to specify an amount. “AMX’s Swiss bond issue appears to be cheap funding, which makes financial sense,” says Barclays in a report. Credit Suisse and BNP Paribas managed the sale. AMX, rated A3/BBB+/A minus, is planning issuance in several markets this year after a blowout MXP15bn peso issue last week. It also wants to do a dollar tap by the end of the year. Separately, America Movil says it plans to increase by MXP50bn its share buyback fund. The board will submit a proposal to shareholders by April 30.
Mexican Group Plugs in MXP Issue
Mexican financial group Grupo Elektra plans to sell MXP1bn in domestic 1-year bonds, basis TIIE. Elektra paid TIIE plus 190bp on a similar MXP1bn 1-year deal in July. Inbursa is managing the sale. Elektra is rated A on a national scale and controlled by billionaire Ricardo Salinas. It acts as a holdco for subsidiaries including Banco Azteca, Seguros Azteca and Afore Azteca.
Infonavit Reheats Mexican RMBS
Government mortgage lender Infonavit has placed Mexico’s first domestic RMBS of the year, raising MXP4.93bn via what the borrower calls its largest and most subscribed deal yet. The amount was smaller than the initially planned MXP5.69bn due to changes in the size of the loan portfolio, according to bankers on the transaction. The sale was split evenly into two 2038 UDI-denominated tranches amortizing one after the other. A MXP tranche with an average life of 2.60 years pays 4.11%, while a MXP tranche with an average life of 7.30 years pays 5.33%. Demand was close to MXP9bn from 130 accounts, Infonavit says, including private banking, mutual funds, pension funds, insurance companies and brokerages. The issuer notes that 7% of the deal went to retail. Banamex and HSBC managed the Cedevis transaction, rated AAA on a national scale. The government-backed lender plans to sell MXP10bn-MXP15bn in RMBS this year, including this week’s offer. Elsewhere, fellow government mortgage lender Fovissste is readying its first bond of 2010, a MXP4.5bn UDI-denominated issue. Pricing is expected March 24. Fovissste raised MXP5bn in UDI-denominated RMBS locally in December, while Infonavit priced MXP2.53bn equivalent in UDIs RMBS the month before.
Banco de Chile Places Local Bond
Banco de Chile has sold UF4m ($164m) in inflation-linked bonds on the domestic market, according to regulators. The 2014 bond priced at 95.18 with a 1.75% coupon to yield 2.99%. The bank is rated AAA on a national scale. The bank’s own brokerage managed the sale.
ISA Wraps Brasil Bond Tender
ISA Capital do Brasil, the holdco for the Colombian transmission company’s 89% ownership in Sao Paulo utility CTEEP, is set to repurchase $324m of its $354m in 8.8% 2017 bonds, following a tender offer, it says. Holders agree to swap the bonds for $1,082.50 per $1,000.00 principal, or $1,117.50 per $1,000.00 before February 24, and to waive a set of covenants on the bond issue. HSBC is managing the process. ISA Capital plans to fund the buyback through new debt issuance in Brazil’s domestic markets, according to a company official, with a deal to be announced as soon as this week. The 2017 bonds were originally sold in January 2007 as part of a 2-tranche sale through ABN and JPMorgan that also included $200m in 7.875% 2012 bonds.
ISA Unit Plans Private Rights Offer
CTEEP, the Brazilian power transmission unit of Colombia’s ISA, plans to raise BRL77m in a private rights offering, according a company filing. The deal will involve the sale of 1.6m new shares at BRL48.50 apiece. ISA Capital do Brasil, the holding company of CTEEP, has pledged to acquire BRL28.8m of the full issue. Other existing investors will be able exercise their rights to acquire new shares via the offering, which is being managed by Itau.
BuscaPe Acquires Colombian Tech Company
Brazilian e-commerce site BuscaPe has acquired a 75% stake in Colombian online payment service provider PagosOnline.net, says PagosOnline general manager Jose Velez. Although he will not disclose the amount BuscaPe paid for his company, he explains the Brazilian company bought out some individual investors and also capitalized the company to help it finance its plans for expansion into Mexico, Chile, Peru, Brazil and Argentina. Velez noted his company had revenue of more than $1m in 2009 and that it is the largest online payments service provider in Colombia, with more than 5,000 commercial clients. There are some 5 other companies offering similar services, he adds. Velez says he expects the company’s revenue to grow tenfold in 5 years. In September, South African technology company Naspers acquired a 91% stake in BuscaPe for $340m.
Moody’s Axes Axtel
Moody’s has downgraded Axtel’s rating, to Ba3 from Ba2, citing competitive pressure and continued negative free cash flow due to high capex needs. The outlook is stable. “The intense competitive environment is expected to continue to place pressure on the company’s operating margins and cash generation, making it a challenge to sustain its leverage tolerance level of 3x debt to Ebitda, if capital expenditure requirements remain elevated,” the agency says. Moody’s believes Axtel will be challenged by Telmex and Cable TV operators as well as wireless substitution.
MRV Wraps Local Bonds
Brazil’s MRV Engenharia e Partipacoes has wrapped up a $516.4m debenture sale, it says. The real estate developer will pay the DI benchmark plus 1.6% on the 2014 notes. It plans to use the funds for acquisitions and its investment program. Bradesco and Banco do Brasil are managing the sale, rated A+ on a national scale. The issuer had upsized the amount from BRL400m following positive feedback on its road show.