LATAM CLOSE-IRSA taps LatAm primary market for US$300m

jueves 17 de marzo de 2016 16:31 GYT
 

* 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)