LATAM CLOSE-IRSA taps LatAm primary market for US$300m
* IRSA set to print new US$360m seven-year bond * YPF mandates banks on up to US$1bn debt sale * Fitch cuts USJ to C on debt swap * Brazil debt spikes on suspension of Lula's cabinet posting By Mike Gambale NEW YORK, March 17 (IFR) - Below is a recap of primary issuance in the LatAm primary market on Thursday: Number of deals expected to price: 1 Total issuance volume expected: US$300m IRSA Argentine real estate company IRSA has announced a US$300m 7NC4 bond ahead of pricing on Thursday. The deal is being done in conjunction with a tender to buy back up to US$420m of its outstanding bonds. Citigroup and JP Morgan are acting as solicitation agents and dealer managers, as well as leads on the bond deal. IPTs low to mid 9% GUIDANCE: US$300m 7NC4 at 9.00%-9.25% LAUNCH: US$360m 7NC4 at 9.00% * Awaiting pricing details * Below is a snapshot of LatAm sovereign credit spreads. SOVEREIGN 3/16 3/15 3/14 1D 10D YTD 2015/16 HIGH BARBADOS 639 638 637 1 -9 35 659 (2/11/16) BRAZIL 432 437 403 -5 -2 -54 542 (2/11/16) CHILE 90 83 82 7 2 4 143 (2/11/16) COLOMBIA 302 298 291 4 -10 13 412 (2/11/16) COSTA RICA 509 501 501 8 -16 -8 587 (2/11/16) DOMINICAN REP 441 437 441 4 -5 26 542 (2/11/16) ECUADOR 1193 1266 1277 -73 -210 -122 1765 (2/11/16) EL SALVADOR 672 670 656 2 25 32 840 (2/11/16) GUATEMALA 305 301 298 4 -27 3 385 (2/11/16) JAMAICA 463 458 459 5 -13 14 519 (2/11/15) MEXICO 201 199 193 2 -11 7 278 (2/11/16) PANAMA 202 199 198 3 2 -4 272 (2/11/16) PERU 216 218 211 -2 -14 -15 291 (2/10/16) TRINIDAD & TOBAGO 182 176 182 6 -7 84 173 (1/15/15) URUGUAY 269 270 265 -1 -5 1 344 (2/11/16) VENEZUELA 2971 3012 2952 -41 -10 179 3713 (2/12/16) Source: Bank of America Merrill Lynch Master Index SPREAD TRENDS: One-day change shows Ecuador and Venezuela tighter by 73bp and 41bp, respectively Ten-day trend shows Ecuador tighter by 210bp Sovereigns tighter YTD include: Brazil, Costa Rica, Ecuador, Guatemala, Panama and Peru PIPELINE: Argentina oil company YPF is out with initial price thoughts of 8.875% area on on a new five-year bond ahead of expected pricing on Friday. The state-controlled entity has selected Credit Suisse, JP Morgan and HSBC to lead the transaction, which is expected to be rated Caa1/CCC+. The 144A/RegS deal could be up to US$1bn in size, according to a filing with local regulators. 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 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)
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