LATAM CLOSE-Femsa prints 1bn seven-year bond

lunes 14 de marzo de 2016 16:13 GYT
 

* Cemex plans IPO of Philippine unit
    * Fitch cuts Oi to CCC, removes negative watch
    * Usiminas board approves R$1bn capital raise

    By Mike Gambale
    NEW YORK, March 14 (IFR) - Just one deal priced in LatAm primary market on
Monday.   
    
    PRICED:
    FEMSA
    Femsa (A-/A) announced a seven-year euro benchmark bond. BBVA, Credit Suisse
and Deutsche Bank are running the Reg S trade.
    IPT: MS+175bp
    GUIDANCE: MS+160bp area (+/-5bp)
    LAUNCH: EUR1BN 7-yr at MS+155bp
    PRICED: EUR1bn 7-yr: 99.517; 1.75%C; 1.824%Y; MS+155bp
        
    Here is a snapshot of LatAm sovereign credit spreads:         
     SOVEREIGN       3/11  3/10  3/9    1D   10D   YTD   2015/16 HIGH
 BARBADOS            636   641   644    -5   -17   32    659 (2/11/16)
 BRAZIL              398   410   416   -12   -75   -88   542 (2/11/16)
 CHILE                81    85    87    -4   -23   -5    143 (2/11/16)
 COLOMBIA            289   295   301    -6   -58    0    412 (2/11/16)
 COSTA RICA          497   511   515   -14   -57   -20   587 (2/11/16)
 DOMINICAN REP       441   445   449    -4   -31   26    542 (2/11/16)
 ECUADOR             1313  1334  1331  -21   -126  -2   1765 (2/11/16)
 EL SALVADOR         655   659   653    -4   -43   15    840 (2/11/16)
 GUATEMALA           302   313   314   -11   -55    0    385 (2/11/16)
 JAMAICA             464   467   470    -3    -9   15    519 (2/11/15)
 MEXICO              193   201   205    -8   -35   -1    278 (2/11/16)
 PANAMA              197   197   199    0    -20   -9    272 (2/11/16)
 PERU                212   217   220    -5   -39   -19   291 (2/10/16)
 TRINIDAD & TOBAGO   182   186   193    -4    16   84    173 (1/15/15)
 URUGUAY             266   271   271    -5   -27   -2    344 (2/11/16)
 VENEZUELA           2960  3068  2956  -108  -91   168  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows LatAm sovereigns flat to tighter
    Ten-day trend shows all LatAm sovereigns tighter
    
    LATAM PIPELINE:
    Raizen Energy launched a cash tender offer on its 7% due 2017 notes,
according to a regulatory statement. The Brazilian company plans to buy up to
US$200m of the outstanding US$400m notes. Raizen is seeking to buy the bonds
back at 100.25, with a US$30 early bird incentive added. The early deadline is
March 4, with the final deadline on March 18. Citigroup, Credit Agricole and JP
Morgan are the dealer arrangers.
        
    Argentina will sell US$11.68bn worth of 5-, 10- and 30-year bonds under U.S.
law in mid April if Congress swiftly approves a debt deal for holdout creditors,
top finance ministry officials told Congress on Friday.
    Finance Secretary Luis Caputo told lawmakers who will debate the debt
agreement that the bonds would carry an interest rate in the region of 7.5%. 
    
    Colombia has mandated BBVA, Goldman Sachs and JP Morgan to organize meeting
with fixed-income investors in Europe to discuss opportunities in the capital
markets this year.
    Finance Minister Mauricio Cardenas will attend the meetings, which start on
March 8 in London. Discussions continue in Germany on March 9, the Netherlands
on March 10 and in London again on March 11. Ratings are Baa2/BBB/BBB
(stable/negative/stable) by Moody's, S&P and Fitch.
    
    The board of Argentine real estate developer IRSA has approved the issuance
of up to US$470m of debt, according to a filing with local regulators.
    
    The Province of Mendoza is looking to raise US$300m in both the local and
international markets to refinance debt, according to local reports. 
    
    Neuquen province is contemplating a bond issue. 
    
    The United Mexican States has filed an up to US$10bn debt shelf with the US
Securities and Exchange Commission. Proceeds will be used for general purposes,
including refinancing and the repurchase of debt.
    
    Argentine E&P company Medanito has wrapped up roadshows ahead of a possible
transaction through Itau and UBS. Expected rating is CCC+ by Fitch.
    
    Concesion Pacifico Tres, a toll-road concession in Colombia, wrapped up a
roadshow through Goldman Sachs. The company is looking to raise up to US$272m of
bonds, according to Fitch, which has rated the senior secured bonds BBB-.
    Pacifico Tres is jointly owned by Construcciones El Condor SA, Mario Alberto
Huertas Cotes, and Constructora MECO SA. Banca de Inversion is acting as its
financial advisor.
    
    Argentina utility Pampa Energia's shareholders have approved a US$500m debt
program.
    
    Uruguay plans to raise up to US$1.5bn in bonds this year.
    
    Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), rated A- and A  by S&P
and Fitch, respectively, has mandated BBVA, Credit Suisse and Deutsche Bank to
arrange a series of fixed income investor meetings in Europe. 
    The investor meetings are expected to take place in the week commencing
March 7 2016. A euro-denominated bond transaction may follow subject to market
conditions.

 (Reporting By Michael Gambale; editing by Shankar Ramakrishnan)