America Movil has priced the first large non-government corporate bond in Mexico’s domestic market this year, raising almost MXP15bn at better rates than Pemex. A MXP4.60bn 5-year tranche pays TIIE plus 40bp, a MXP7.00bn 10-year pays 8.60%, and a MXP3.28bn 15-year UDI-denominated piece pays a fixed 6.20%. Demand topped MXP18bn, according to bankers managing the sale. It came from a variety of investors including private banking, insurance companies, mutual and pension funds. The 2015 floater priced at the low end of initial investor expectations, which ran from about 40bp to 75bp, while the 2010’s spread of Mbono plus 95bp was in line with 75bp-100bp expectations. The UDI-denominated tranche was larger than the up to MXP2bn expected, as the issuer opted to increase it at the expense of the TIIE tranche, says a banker on the deal. America Movil had planned to issue up to MXP15bn, including up to MXP6bn in a 5-year floater, up to MXP7bn in a 10-year fixed rate note. The UDI deal was expected to be privately placed with a handful of investors. Banamex, Inbursa and Santander managed the sale, rated AAA on a national scale. The 3-part sale will be followed by a dollar issue this year, after roadshows in Q2. The issue 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. In the only other large issuance in what has been a slow-starting year, Pemex sold MXP8bn in 5-year floating-rate notes at TIIE plus 70bp, MXP5bn in 10-year at 9.10%, and a 10-year MXP2bn UDI piece at 4.20%. Though Pemex spreads have improved since the sale, bankers on and away from the deal say the new America Movil bonds generally have priced through the Pemex curve. America Movil has indicated it may follow the peso bonds with issuance in dollars and other currencies later this year. The next large transaction in the Mexican bond market should be an up to MXP5bn deal from state utility CFE.
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BTG Pactual FIG Banker Walks
In the first high profile departure from budding Brazil-rooted investment bank BTG Pactual, Pedro Guimaraes, a partner and investment banking MD, has left to pursue a new venture, say people close to the move. Guimaraes, a FIG banker by trade, has strong relationships at Banco do Brasil and at the time of his departure earlier this week, was actively involved in advising the state-owned bank on insurance sector consolidation. He also helped bring the majority of Brazil’s publicly traded mid-cap banks to the IPO market in 2007 and 2008. Guimaraes is understood to have left on cordial terms and is planning a new venture that will likely be made public in the coming months. Executives away from the banker speculate that disagreement with senior BTG partners may have led to a rift. However, people close to him say otherwise. Meanwhile, Evandro Pereira, head of ECM at Pactual, who was expected by many to leave at year-end 2009, has remained with the firm, say people close to the process. The MD will continue to help lead the bank’s strong IPO and FO franchise as a partner, they add. Meanwhile, Rodolfo Riechert, former co-head of investment banking at UBS Pactual, has opened a new shop focused on capital markets and pre-IPO advisory called Plural Capital. Elsewhere, BTG recently appointed former UBS investment bank CEO Huw Jenkins as a managing partner based in London.
Batista Shipping Unit Launches IPO
OSX, the startup shipping unit belonging to Eike Batista’s holding company EBX, has squared away details for its upcoming IPO. If priced at the midpoint, the total offering could be worth up to BRL8.68bn, though the base offering not including the additional issuance options would be worth BRL6.43bn. The deal, scheduled to price March 17, is being marketed to qualified institutional buyers only because of the higher risk greenfield nature of the company. The main assets, including a port and shipyard in the south of Brazil, are not even built yet. The base offering is 5.51m shares. A 15% greenshoe of 827,000 units and a hot issue of 1.1m bring the maximum number of shares to be offered to 7.44m. OSX is targeting a price of BRL1,000-BRL1,333, resulting in a midpoint of BRL1,167. The deal is led by Credit Suisse as lead coordinator, Itau BBA as stabilizing agent, Bradesco BBI, BTG Pactual and Morgan Stanley. Also on the offering memorandum at a co-manager level is Barclays, HSBC, Banco Votorantim and XP Investimentos.
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