A group of creditors opposes the sale of Satelites Mexicanos (Satmex) to EchoStar and Mexican communications firm MVS Comunicaciones, the Mexican satellite operator says. Holders of more than 50% of its second priority senior secured notes have refused to back the deal worth up to $374m. EchoStar’s bid is conditional on Satmex repurchasing $424m in senior secured notes with a portion of the proceeds. The PIK debt comes out of a 2006 restructuring agreement, and holders of $238m have first lien debt paying Libor plus 875bp. Holders of $186m meanwhile have the second priority senior secured debt, which has a coupon of 10.125%. “This is a first offer – there will be negotiating, and I expect the holders will get par,” says an investor following the deal. Satmex says that it continues discussions with bondholders, but that a buyback of the debt is not possible at the current sale price. Last week, EchoStar and MVS announced an agreement to buy Satmex in a deal involving a $267m cash payment and $107m in distributions to shareholders. Deutsche and Peter J. Solomon advised EchoStar, while Perella Weinberg helped Satmex.
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Credit Suisse M&A Head Expands EM Scope
Credit Suisse has promoted LatAm M&A head Marcus Silberman to the newly created position of co-head of EM M&A. Silberman, a Brazilian, will direct alongside Vikas Seth, head of industrials M&A for Europe. Both are MDs. The new role is designed to capture more opportunities in the world’s highest growth areas for M&A including LatAm, EMEA/ME and Asia, according to an internal memo circulated to employees Wednesday. Product specialists in Asian countries are expected to report to Silberman and Seth. Replacing Silberman as head of LatAm M&A is Daniel Cavalli, a director. Credit Suisse also recently poached utilities and energy banker Guido Cerini from JPMorgan.
Geo Eyes Local Securitization
Corporacion Geo’s Casas Geo unit is planning to offer bonds in Mexico’s domestic market backed by future collection rights. The transaction is expected to be for MXP500m, an investor relations official says, and the tenor has not been determined. Geo did a similar transaction in 2004 and 2005, and plans to use the current transaction and another to replace them, as they mature in 2010 and 2011, respectively. Banorte is managing the sale, which has not yet been rated. The previous bonds were rated AAA on a national scale.
Bancolombia Leasing Grows Bond Issue
Bancolombia Leasing has issued COP400bn ($207m) of local bonds in 5 tranches, says treasurer Monica Sanchez, adding that total demand surpassed COP700bn. A COP130bn 2-year piece paid DTF plus 1.20%, a COP86bn 3-year pays IPC plus 3.25%, a 5-year piece paying IPC plus 4.17% raised COP32bn, a 10-year piece paying IPC plus 5.40% sold COP58bn and a 5-year piece paying a fixed rate of 9.20% sold COP94bn, Sanchez says. Company CEO Luis Fernando Perez tells LatinFinance that originally the issue was going to be of COP300bn, but that the company decided to upsize the issue after seeing investor demand was high. He explains that this is the fifth issue from a plan to issue a total of COP1.5trn and that only one more issue worth COP200bn is pending. No date has been set for that issue, he says. Proceeds of the AAA rated deal will be used to acquire more assets to add to its leasing portfolio. Bancolombia’s investment bank managed the sale.
America Movil CFO Defines Pricing Through Pemex
Leading Mexican issuer America Movil priced this week’s local deal more than 40bp through state-run Pemex, CFO Carlos Garcia Moreno tells LatinFinance. A MXP7.00bn 10-year paid 8.60%, or MBonos+95bp, while Pemex was at 138bp, says Garcia. “We were well through Pemex. It was a great execution,” he adds. Garcia says some local banks had started pitching the issuer pricing flat to slightly wide to Pemex. A MXP4.60bn 5-year tranche paid TIIE plus 40bp, versus TIIE+70bp for the state oil monopoly. Garcia has strong praise for leads Banamex, which America Movil has not used locally in several years, as well as Inbursa and Santander. The first large non-government corporate bond in Mexico’s domestic market this year raised almost MXP15bn. It drew more than 100 orders that were well diversified, including large Afores’ tickets on the 10-year, says Garcia. Contrary to local expectations, the CFO says the 15-year tranche was widely distributed, including to insurance companies and Afores. The MXP3.28bn 15-year UDI-denominated piece priced at 51.5375 with a 0% coupon, for an annual interest rate of 4.41% compound. The price is 100% discounted at a 6.20% annual rate. “We had the expectation that long-duration UDIs were going to be well received,” says the official. He adds that the book on the long end was at least MXP4bn, though at a slightly higher price for the full amount. Total demand topped MXP18bn, according to bankers managing the sale. It was rated AAA on a national scale. The issue will be followed by a dollar issue this year, after roadshows in Q2. The local trade is the first from America Movil since it announced it will take control of Carso and Telmex via M&A expected to forge the world’s third biggest telecom.
Cemig Wraps up Jumbo Local Debt
Brazilian utility Cemig, has received final approval for its BRL2.7bn debenture issue, wrapping up the biggest local deal of the year so far. A BRL1.6bn 2012 tranche pays the DI benchmark plus 0.90%, while a BRL1.1bn 2015 piece with a 3-year grace period pays 7.67% over the ICPA inflation benchmark. Proceeds will be used to refinance a BRL2.7bn promissory note placed in October at DI plus 113%. Banco do Brasil, Caixa Economica Federal, HSBC, Votorantim, BES and BTG managed the deal through the Cemig Geracao e Transmissao unit. It was rated AA on a national scale. The offer is the largest in Brazil’s domestic market since BRL3bn from Telemar in April 2009, according to regulatory data.
Ecopetrol Wants $3bn Debt Approval
Ecopetrol plans to put a COP5.5trn ($2.86bn) bond shelf to an investor vote March 25. The bonds would be sold in international or domestic markets. The oil producer, which is 89.9% owned by the Colombian government, had COP8.8trn approved this time last year, and the COP5.5trn amount represents the remainder following last year’s blowout $1.50bn 2019 debut bond in international markets. A local issue considered to follow last year was put off after Ecopetrol secured $500m more than expected through the dollar deal, on some $9bn in orders. Proceeds from the new bonds will fund international investments, as the company looks to meet $6.93bn in capex this year. In January, the company said it planned to raise up to $3.50bn through various instruments in international markets in 2010. It secured that month a preliminary loan commitment from the US Exim bank for $1.00bn.
YPF Raises ARP/USD Bonds Locally
Argentina’s YPF has sold $107m-equivalent in dollar and peso bonds on the domestic market. The oil producer’s ARP143m ($37.1m) in 2011 bonds pay Badlar plus 2%, while $70m in 2013 dollar bonds pay a fixed rate of 4%. BBVA Banco Frances, Banco de Santa Fe, and Santander Rio managed the sale, rated AAA on a national scale.
Banco Daycoval Hits Road
Brazilian mid-sized bank Banco Daycoval plans to begin marketing today a new 2015 dollar bond. The size of the Reg S transaction has not been determined, but the lender is expected to raise at least $100m. S&P and Fitch have each rated the issuance BB for up to $150m. A roadshow aimed at retail investors will begin in Switzerland today, visit Switzerland and Miami Friday, and finish in London and New York Monday, says a banker on the deal. Itau, Morgan Stanley and Santander are managing the sale. The bank’s last dollar bond was a $100m 7.25% of 2011, sold through HSBC, Itau and Banco Votorantim in July 2008.
Grupo Carso Sets Up Investment Fund
Mexico conglomerate Grupo Carso has set up a MXP3.5bn investment fund known as Enersa, run by Telmex board member Jaime Chico Pardo, according to a statement from Chico Pardo’s office. The fund will invest in health and energy companies and is already considering providing growth capital to Mexican companies such as Selmec, Hubard & Bourlon, Optima Energia, Laboratorios Medicos Polanco, and Laboratorios Clinicos Puebla. Grupo Carso holds a 60% stake in Enersa and Chico Pardo the remaining 40%.