Pampa Energia will look to capitalize on a solid window in the securities market after picking a group of banks for a proposed cross-border bond sale.
The Argentine firm has hired Citi and Deutsche Bank as bookrunners, while Credit Agricole and Santander have joined as co-managers, debt capital markets sources said. The banks will take the company’s executives on a roadshow in Boston, New York, Los Angeles and London from tomorrow through January 16.
Pampa’s potential bond sale, rated B3/B-/B+, could swell to $1bn and is likely to mature somewhere between five and 10 years.
The timing was no surprise, after seven LatAm issuers announced roadshows last week. For Pampa, it marks a chance to capitalize on this positive market window, after the company postponed bond plans last June.
Pampa had prepared for a bond market tap to finance its purchase of Petrobras’ Argentine assets, but in the end it secured some $750m funds from the corporate loans market last August. Citi and Deutsche Bank also led the loan.
After it picked up the Brazilian state-owned energy company’s Argentine assets, it also assumed responsibility over a $500m 7.375% 2023 non-call four-year bond sold by Petrobras Argentina in July.Those notes were hovering at 98.875 cents to the dollar on Friday and offering investors yield of 7.6%, a second banker said.
Petrobras agreed to sell its assets in Argentina and Chile in May last year to Pampa and private equity fund Southern Cross, respectively for a combined $1.38bn.