LATAM CLOSE-No deals price in LatAm primary market

lunes 27 de junio de 2016 14:03 GYT
 

* Bankers hold out hopes for renewed bond activity
    * Pampa Energia to hire four banks on acquisition bond
    * Cementos Argos takes out US$100m loan
    * Yield on 10-year UST hit a 4-year low of 1.46%

    By Mike Gambale
    NEW YORK, June 27 (IFR) - No deals priced in LatAm primary market on Monday.
    
    Here is a snapshot of LatAm sovereign credit spreads:
     SOVEREIGN      6/24  6/23  6/22   1D  10D   YTD    2015/16 HIGH
 ARGENTINA          492   462    474   30  -17    -          -
 BARBADOS           658   643    649   15   4     54   659 (2/11/16)
 BRAZIL             357   337    347   20   -7   -129  542 (2/11/16)
 CHILE              110    93    99    17   1     24   143 (2/11/16)
 COLOMBIA           258   244    252   14  -13   -31   412 (2/11/16)
 COSTA RICA         466   451    460   15   -3   -51   587 (2/11/16)
 DOMINICAN REP      426   402    415   24   6     11   542 (2/11/16)
 ECUADOR            931   919    927   12   11   -384  1765 (2/11/16)
 EL SALVADOR        673   656    668   17   11    33   840 (2/11/16)
 GUATEMALA          297   276    283   21   5     -5   385 (2/11/16)
 JAMAICA            454   433    441   21   21    5    519 (2/11/15)
 MEXICO             201   186    192   15   0     7    278 (2/11/16)
 PANAMA             213   193    202   20   9     7    272 (2/11/16)
 PERU               208   191    196   17   0    -23   291 (2/10/16)
 TRINIDAD & TOBAGO  222   206    216   16   4    124   173 (1/15/15)
 URUGUAY            265   244    254   21   2     -3   344 (2/11/16)
 VENEZUELA          2648  2657  2804   -9  -247  -144  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day shows most LatAm sovereigns wider
    12 out of 17 sovereigns flat to wider
    YTD: Brazil tighter by 129bp
    
    PIPELINE:
    Petrobras Argentina is preparing an up to US$500m bond sale to fund a tender
for all of its US$300m of outstanding 5.875% 2017s, according to a filing with
local regulators.
    The borrower is seeking to raise 10-year money and has mandated Citigroup
and Deutsche on the deal. The announcement comes after Pampa Energia agreed
earlier this year to purchase a 67.2% stake in Petrobras Argentina for US$892m. 
    
    Argentine power company Pampa Energia will also hire four banks to lead a
new international bond sale that will refinance debt taken out to fund its
acquisition of Petrobras's Argentine assets.
    The company plans to hire Deutsche Bank, Citigroup, ICBC and Banco Galicia
to lead the bond sale, which will refinance a US$700m bridge loan extended by
the same lenders, Pampa chairman Marcelo Mindlin told IFR.
    
    Argentina's Province of Salta has wrapped up roadshows after marketing a
144A/Reg S bond transaction through Deutsche Bank and Citigroup. Ratings are
CCC+/B by S&P and Fitch.
    
    Mexican real-estate developer Grupo GICSA has finished investor meetings
through JP Morgan and Santander. The company has been marketing a US dollar
bond, which is expected to be rated BB/BB-.
    
    Argentine confectionery company Arcor, rated B1/B+, will finish roadshows on
Tuesday in New York ahead of a possible 144A/RegS bond through Itau BBA, JP
Morgan and Santander. 
    Proceeds are going to fund a tender for any and all of its outstanding 7.25%
2017s. Holders are being offered a purchase price of 101.813 if they validly
tender by the expiration date of July 1.
    
    Celulosa Argentina is eyeing an up to US$250m seven-year bond sale,
according to a filing with local regulators. The pulp and paper company has been
in discussions with bankers from Citigroup and Credit Suisse about financing
options, the company said.
    
    Bolivia is hoping to sell an up to US$1bn 10-year bond in the coming months,
according to Economy Minister Luis Arce Catacora.
    Proceeds would go mainly towards investment in healthcare, specifically
hospitals. Bolivia is rated BB by S&P and Fitch and one notch lower at Ba3 by
Moody's.

 (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)