Argentine energy company Pampa Energia has launched a $750m 2027 cross-border bond, offering yields
at 7.625%, a slight concession on Petrobras Argentina’s comparable 7.375% 2023
bond.
The
company set initial price talk in the low 8% area and brought this in at time
of guidance to 7.75%, with an ability to tighten or widen the yield by 12.5bp,
debt capital markets sources said.
Orders
swelled to $4bn on strong performance from comparable bonds and
heavy demand for Argentine debt.
Petrobras
Argentina’s $500m
outstanding in 7.375% 2023 bonds were offering investors a yield of 7.2% on
Tuesday afternoon, or a cash price of 100.75, one banker monitoring the deal
said.The
bonds have tightened since the week of December 6, when they offered yields of
8.12%, or 96 cents to the dollar.
State-owned
energy company YPF’s 2025 notes was an alternate comparable for Pampa’s latest
trade, offering yields of 7.6% and a juicy cash price of 105.625.
Renewables
unit Genneia’s
$350m five-year non-call three bonds from last week surged in secondary
trading, seen at 102 yesterday. Yields on offer were 8.25%, some 50bp tighter
than issue day.
Pampa’s
trade comes just days before the
sovereign is poised to tap bond investors for some $5bn in fresh debt.
Pampa’s new 10-year non-call five bonds were due to price on Tuesday night.Citi
and Deutsche Bank are coordinating the trade, while Credit Agricole and
Santander are co-managers.
Pampa agreed in May 2016 to buy Petrobras’ Argentine assets for $892m. Citi was the financial advisor to Pampa, while Evercore advised Petrobras. Linklaters was Pampa’s legal counsel to Pampa and Davis Polk advised the Brazilian company.